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please give solution E- E - F# 211 1 A- AaBbCcDc AaBbCD AaBbCD AaBbCcDc AaBbCD AaBbc Bbce Normal Heading 2 List Para... No Spac... 1
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E- E - F# 211 1 A- AaBbCcDc AaBbCD AaBbCD AaBbCcDc AaBbCD AaBbc Bbce Normal Heading 2 List Para... No Spac... 1 Table Pa... Heading 1 Heading Styles A Chan Font Paragraph Question 4 (This question has four items, a),(b), (c), and (d)) (6 + 3 + 3 + 2 = 14 marks) XYZ Ltd plans to sell 120,000 units at a selling price of $15 per unit. The company has collected the following information for its first year of operations: Sales $1,800,000 Selling expenses (40% variable and 60% fixed) 240,000 Direct materials 511,000 Direct labour 285,000 Administrative expenses (20% variable and 80% fixed) 280,000 Manufacturing overhead (70% variable and 30% fixed) 360,000 The managing director of the company has asked that you undertake a cost-volume- profit (CVP) analysis to assist with planning Required: (a) Calculate the breakeven point in units for the first year of operations (6 marks) Suggested Answer: Contaa here to me radhan O e W BUACC5933 Cost and Management Accounting Semester 1 2020 (Or, you can use the given excel document to show your work for this question.) (b) XYZ Ltd has set a target profit (net income) of $260,000 for next year. What is the required sales in dollars for the company to achieve this target? (Assume that selling price, variable costs per unit and fixed costs will remain the same as for the first year of operations.) (3 marks) Suggested Answer: (Or, you can use the given excel document to show your work for this question) (c) Assuming that the company meets its target profit (net income) for next year, what will be its Margin of Safety Ratio? (3 marks) Suggested Answer: Wiado Technis. O e WStep by Step Solution
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