Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

need assistance with the following management accounting questions showing all steps. The following information is showing company peter's Ltd revenue and advertising costs over 5

need assistance with the following management accounting questions showing all steps.

image text in transcribed The following information is showing company peter's Ltd revenue and advertising costs over 5 years Sales revenue Advertising cost 1 700 430 2 830 460 3 820 470 4 530 400 5 790 380 The company's revenue for year's 6 and 7 are as follows: 960/= and 1000/=. How much is the company expected to spend on advertisement? 2. Peter's consulting company Ltd sell a single product. In the coming month, it is budgeted that this product will generate a total revenue of Kshs. 300000 with a contribution margin of Kshs. 125000. Fixed costs are budgeted at Kshs. 100,000 for the month. Calculate the margin of safety. Data concerning Brian limited's single product is as follows: Selling price 6 Variable production cost 1.2 Variable selling cost 0.4 Fixed production cost 4.00 Fixed selling cost 0.80 The budgeted production and sales for the year are 10,000 units. Required i. ii. Determine the company's break even point to the nearest whole unit Using contribution margin ratio determine the sales value at breakeven point 3. Tina enterprises sell two products X and Y . during the year 2014, it plans to sell the following quantities of each product. Sales budget(in units) Products quarter1 quarter2 quarter3 quarter4 X 9000 2300 3000 8000 Y 8500 7500 5500 8500 Each of these two products is sold on a seasonal basis. Product A tends to sell better in summer months, while product B sells better during winter. X is sold at sh. 10 per unit while Y at a price of sh. 20 per unit throughout the year. A study of the past experience reveals that Tina's enterprise has lost about 3% of its invoice each year because of returns( constituting 2% loss of revenue) allowances and bad debts (1 % loss) Required Prepare a sales budget incorporating the above information

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Communication Essentials

Authors: Courtland Bovee

4th Canadian Edition

0133508706, 978-0133508703

More Books

Students also viewed these Accounting questions