Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve it in 30 mins I will thumb you up please fast I have 30 mins just Malik started a travel luggage company selling

image text in transcribed

please solve it in 30 mins I will thumb you up please fast I have 30 mins just

Malik started a travel luggage company selling only one style of luggage. It has just completed its first year of trading. The summary profit and loss account for the year is set out below: The following information is available: (i) all of the direct costs are variable with production (ii) the production overhead figure does not vary with the output. Required: (a) The break-even point in units and sales value. (7 marks) (b) Margin of Safety in Units. (2 marks) (c) The number of units needed to be sold to achieve a profit of 14,000. (2 marks) (d) special order was received at last minute to supply 5,000 units at a price of 60. Should IY407 Management Accounting Exam Page 4 of 10 the company accept this special order? Explain your answer using appropriate calculations. (7 marks) The company has set a profit objective of 24,000 for year 2 . The following suggestion have been made as to how this profit could be achieved. Reduce the selling price by 3 per unit and use a less expensive material that would reduce the direct material cost by 2 per unit Required (e) For the above suggestion, calculate how many units need to be sold to achieve the profit objective of 24,000

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

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

More Books

Students also viewed these Accounting questions