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please answer any one of those two questions Question #02 Marks : 06 (2x3) The Friends company is a single product company. The following data
please answer any one of those two questions
Question #02 Marks : 06 (2x3) The Friends company is a single product company. The following data is available for the month of March 2021. 1. Sale price per unit: Tk.30.00 2. Number of units manufactured and sold during the month: 2,000 3. Variable manufacturing cost per unit: Tk. 12.00 4. Variable selling and administrative cost per unit: Tk.4.00 5. Fixed manufacturing cost per month: Tk.6,00 6. Fixed marketing and administrative cost per month: Tk. 2,000 Company does not maintain finished goods and work in process inventory. Required A. Prepare income statement following traditional format B. Prepare income statement following contribution format Question # 03 Marks : 06 (3x2) The Y company operates a chain of franchise operators country wide and has approached you for advice. The manager is proposing to market a new pack consisting of a shirt with matching tie, socks and handkerchief. He wishes the financial potential to be assessed in relation to two methods of promoting sales-firstly by paying commission and secondly by a salary bonous. The details are : Sales price of pack Tk. 196.00 Variable cost per pack Tk. 168.00 Fixed costs including staff salaries Tk. 252,000.00 You are required to calculate A. The break-even point in units if a sales commission of Tk. 12.00 per pack is paid to the sales staff. B. The break-even point in value if no sales commission is paid, but staff salaries are increased by a total of Tk. 196,000.00 C. The margin of safety in units in (A) and (B) if sales reach 18,000 packsStep by Step Solution
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