Question
i really need help with this math Skyflora.org is a growing and renowned brand in the field of online gardening solution provider.Rooftop gardening is one
i really need help with this math
Skyflora.org is a growing and renowned brand in the field of online gardening solution provider.Rooftop
gardening is one of its popular products. Cost and sales data of rooftop gardening are given below:
Variable cosrs: Fixed Costs (per month) :
Fruit Plants 320 Office Rent 25000
Flower Plants 480 Factory Rent 45000
Beautification Plants 430 Salary 145000
Vegetable plants 200 Promotional activity 30000
Soil 200 Depreciation - Pickup Van 20000
Tub 360
Drum 240
Medicine and others 110
Total variable cost 2340 Total Fixed cost 265000
Other information:
Selling price : 4500
Daily sales 15
Requirement:
I Generate contribution format incomestatement showing total, per unit and percentage column.
II Calcualte break-even point in terms of taka sales and sales in units.
III Draw break-even graph showing all the relevant information.
IV Identify sales of the company assuming target profit of 500000 taka per month.
V What is the margin of safety in sales and percentage at current level of sales
VI Calculate degree of operating leverage (DOL) and explain its significance
VII Recently price of the vegetable platns has increased by 25% and Drum cost has gone up by 30%.
On the other hand office rent has gone down by 20%, due to effect of covid - 19. Considering ghe
changes, reconstruct income satement of the company.
VIII Refer to changes in VII and calculate break-even point of the company.
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