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Please Solve this 2 questions ASAP. Thanks Colla Format Arrange View Share Window Help 4ACCNOO1W_Timed Assessment (1) 2 a 125% + TET View Zoom Add

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Colla Format Arrange View Share Window Help 4ACCNOO1W_Timed Assessment (1) 2 a 125% + TET View Zoom Add Page Insert Table Chart Text Shape Media Comment Helot Co is a health food company producing and selling a high-energy product "Shakes", to gyms and health food shops. To manufacture one unit of "Shakes", the company uses 3 of direct material and 2 of direct labour cost. Other variable overheads amount to 1 per unit of production. The annual fixed costs of operating the company for a year are estimated at 200,000. Helot Co is expected to have a big share in the energy drinks market and has huge sales. The expected sales for the coming year are 50,000 units at a selling price of 11. Required: The managing director of Helot Co has requested you to calculate the following information to present in the next board meeting. a) What is the company's break-even point in number of units and in sales revenue ()? (4 marks) b) What is the margin of safety in number of units and briefly explain what this figure means? (4 marks) c) How many units should the company sell per year in order to make an annual profit of 100,000? (4 marks) d) Refer to the original data. The company is discussing the construction of a new, automated plant to manufacture the standard Shakes. The new plant would slash variable costs per unit by 20%, but it would cause fixed costs to double in amount per year. If the new plant is built, what is the impact of this decision on the break-even point in units? marks) e) Discuss the assumptions/limitations of the break-even analysis in making management decisions. (9 marks) MacBook Pro UL DFIGHT Insert Format Arrange View Share Windo Help 4ACCN001W_Timed Assessment (1) 2 Till Tv Insert Table Chart Text Shape Media Comment | D View 125% Zoom Add Page Collaborate For nent ARK Colour Design Plc is a specialist company which manufactures stationery. The majority of its customers are domestic retailers, schools and universities. ARK Colour Design Plc has experienced strong growth over recent years and has built strong relationships with their customers due to the company's focus on quality and on-time delivery. In order to remain competitive, the company is looking to expand its operations and purchase new plant, including an advanced 3D printer. After research, the company found two 3D printer models which meet its requirements (Canon and HP) The projects are estimated to last for five years. The forecast cash flows for both 3D printer models are as follows: ades Project HP Model Canon Model () (600,000) (E) Initial Investment (500,000) Cash inflows forecasts: Year 1 Year 2 Nothing selecte Select an object or text Year 3 200,000 300,000 400,000 250,000 100,000 100,000 150,000 200,000 250,000 150,000 Year 4 Year 5 The company's cost of capital is 15% Required: a) Appraise the two projects using the following methods of investment appraisal: i. Payback period (4 marks) ii. Net present value (6 marks) (Present Value tables are provided at the end of this paper). b) Based upon your calculations from part (a), state, with reasons, which, if any, of the two 3D printer projects the directors of ARK Colour Design Plc should accept. MacBook Pro W R it Insert Format Arrange View Share Window Help 4ACCN001W_Timed Assessment (1) 2 125% Zoom + Add Page View Insert Table Chart Text Shape Media Comment Collaborate The company's cost of capital is 15% icti nt ment Required: a) Appraise the two projects using the following methods of investment appraisal: i. Payback period (4 marks) ii. Net present value (6 marks) (Present Value tables are provided at the end of this paper). rades b) Based upon your calculations from part (a), state, with reasons, which, if any, of the two 3D printer projects the directors of ARK Colour Design Plc should accept. ers (4 marks) c) Identify and discuss any other factors that ARK Colour Design Plc should consider before arriving at a decision. (6 marks) d) Critically discuss the usefulness of the accounting rate of return method of making capital investment decisions. (5 marks) (Total: 25 marks) [QUESTION 6 STARTS ON THE NEXT PAGE) QUESTION 6 Module Code: 4ACCN001C-2 Page 10 of 12 Nothing sele Select an object or te Leopard Ltd produce laptops which have the most recent technology and software. Leopard Ltd sale its products to large retailers around the world. Based on Leopard Ltd operating budget for 2021, the following data has been extracted: March Sales () 400,000 600,000 Purchases () 350,000 500,000 onnon April non non MacBook Pro

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