Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer Question 8 in Qa) Qb) Qc) Qd) format! Thanks. Please write answer in bulk for each question please. Please answer to best of

Please answer Question 8 in Qa) Qb) Qc) Qd) format! Thanks. Please write answer in bulk for each question please. Please answer to best of your ability. Thanks. Will give good rating.

image text in transcribed

Question 8 Trimake Limited makes three main products: Product X, Product Y and Product Z. Product Z is the newest of the three products and were first launched 12 months ago. Trimake Limited's projected manufacture costs and selling prices for the three products are as follows: Unit sales Unit selling price Variable manufacturing cost per unit Variable selling cost per unit Product X 20,000 10 5 2 Product Y 20,000 20 4 2 Product Z 10,000 25 8 4 Variable costs include the labour costs of the skilled and unskilled workers. Annual fixed manufacturing costs and annual fixed selling and administrative costs are 200,000 and 170,000 respectively. Trimake Limited is subject to a 20 percent tax rate on income. Required: a) Given the above information, how much will Trimake Limited earn each year after taxes? (8 marks) b) Assuming that the sales mix remains as budgeted, determine how many units of each product must be sold to break even. (6 marks) c) After viewing the original estimates, it transpires that the variable manufacturing cost of Product Z will increase by 25 per cent and variable selling cost of Product Y will increase by 50 per cent. The selling price for Product X will go up by 30 per cent. However, management has decided not to change the selling price of either products. In addition, management recently learned that the sales in units for Product Z will equal three times the unit sales as each of other products. Under these circumstances determine how many units of each product must be sold to break even. (6 marks) d) Discuss the assumptions underlying cost-volume-profit analysis in making management decisions

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

Behind Closed Doors What Company Audit Is Really About

Authors: V. Beattie, R. Brandt, S. Fearnley

2001 Edition

0333747844, 978-0333747841

More Books

Students also viewed these Accounting questions

Question

6. Explain the power of labels.

Answered: 1 week ago

Question

10. Discuss the complexities of language policies.

Answered: 1 week ago