Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please do asap and clearly show all your workings After a few years of operation on the market, Beyblade Limited is currently operating at 75%
Please do asap and clearly show all your workings
After a few years of operation on the market, Beyblade Limited is currently operating at 75% of its capacity. In the past two years, the company's levels of operations were 55% and 65% respectively. The current production and sales level in 2020 are actually 75,000 units. The company is targeting a capacity level of 85% for the next financial year in 2021, despite covid-19 impacts. The following cost details are available: 75% Direct Materials ($) Direct Labour($) Production overheads ($) Sales overheads ($) Administrative overheads ($) 55% 1,100,000 550,000 310,000 320,000 160,000 65% 1,300,000 650,000 330,000 360,000 160,000 1,500,000 750,000 350,000 400,000 160,000 Profit margin is estimated to be 20% on sales. For the next financial year, costs are expected to increase by the following percentage: Direct materials 8% Direct Labour 5% Variable production overheads 5% Variable selling overheads 8% Fixed production overheads 10% Fixed selling overheads 15% Administrative overheads 10% REQUIRED: Assuming no inventory is kept, prepare a Flexible Budget for the next financial year 2021 at 85% capacity level, showing clearly Total Cost, Profit and Total Sales
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started