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need the ansers today. be as detailed as possible. P) Ld is in an industry which is receveriag from a recession. The directors of the
need the ansers today. be as detailed as possible.
P) Ld is in an industry which is receveriag from a recession. The directors of the company hope next year to be operating as 85% of capacity, alhough curently the conpany is operating only at 65% of capacity. 65% of capacity represents output of 10,000 units of the single product which is produced and sold, One hundred direct workers are employed in production for 200,000 hours in the eurrent year. The flesed budgets for the current year are as follews: Profit in aay year is budgeted to be 162/32 of sales. The following percentage increases in costs are expected for next year. Reyuiredt (a) Prepure for next year a flexible budget statement on the assumption that the company operates at 85% of capacity; your statement should show both contribution and profit. (16 Marice) (b) List any three (3) pooblems that may arise from the change in capacity level. (3 Marks) (c) State any three (3) disadvantages of operating a participatory budgctary process. (6.Marks) P) Ld is in an industry which is receveriag from a recession. The directors of the company hope next year to be operating as 85% of capacity, alhough curently the conpany is operating only at 65% of capacity. 65% of capacity represents output of 10,000 units of the single product which is produced and sold, One hundred direct workers are employed in production for 200,000 hours in the eurrent year. The flesed budgets for the current year are as follews: Profit in aay year is budgeted to be 162/32 of sales. The following percentage increases in costs are expected for next year. Reyuiredt (a) Prepure for next year a flexible budget statement on the assumption that the company operates at 85% of capacity; your statement should show both contribution and profit. (16 Marice) (b) List any three (3) pooblems that may arise from the change in capacity level. (3 Marks) (c) State any three (3) disadvantages of operating a participatory budgctary process. (6.Marks) Step by Step Solution
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