Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please assist Part e to i. Assignment 2 (CVP Analysis) Due date 12 June 2020 QUESTION Marginal costing is used to evaluate the performance of

image text in transcribed

Please assist Part e to i.

Assignment 2 (CVP Analysis) Due date 12 June 2020 QUESTION Marginal costing is used to evaluate the performance of a mine. A sand producing operation intends to produce and sell its products under the following cost and income structure. Selling price US$400/tonne Labour cost US$80/tonne Material cost US$140/tonne Fixed Costs US$6,300,000 (a) Calculate the contribution margin per tonne. (b) Estimate the breakeven point (BEP in tonnes and monetary value. (e) Determine the cost outlay at BEP. (d) How many tonnes should be sold to realise a profit of US$1,650,000 (e) How many sold tonnes make a margin of safety of 65%? (1) Estimate the percentage change noted in the selling price if the BEP increases by 40% while the fixed costs also register decline of 10%. () Prepare a table showing VC, TC, FC and Profit/Loss for the quantities ranging from 0 to 80,000 at spacing of 5000 (h) Produce a chart showing the trends of TR, TC. FC and VC and indicate the BEP on the chart (i) Explain economies of scale' highlighting how it occurs in production

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

ISE Business Accounting Volume 1

Authors: Frank Wood, Alan Sangster

8th Edition

0273638394, 9780273638391

More Books

Students also viewed these Accounting questions