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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
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. (4 marks)Step by Step Solution
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