Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 KHALID Ltd is specialized in purchase and sale of different electronics products from abroad. The company has experienced increased market share and decided

QUESTION 2 KHALID Ltd is specialized in purchase and sale of different electronics products from abroad. The company has experienced increased market share and decided to increase its stock in order to capture more customers. The company has recently ordered and received a large consignment of products of various types from one of its suppliers in Asia for a total cost of TZS. 80,000,000/=. The company storekeeper has sorted the products into the following categories. PRODUCT Units ; Selling Price per Unit Category A 12,000; 8,000 TZS. Category B 8,000;. 6,000 TZS. Category C 14,000 ; 4,000 TZS. Total 34,000 The following information is also available: i. The percentage of profit in each of the product categories is the same. ii. Purchase cost is the only variable cost, and fixed costs are higher than variable costs by 19%. iii. Fixed costs are allocated to product categories basing on unit purchased and sold. iv. All product purchased were sold, the company does not keep stocks. Required: (i) Compute the number of units for each product category that should be purchased for the company to breakeven. (ii) If the Company wishes to attain a target profit of TZS. 49,600,000, determine units of each category to be purchased and sold.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Introduction to Managerial Accounting

Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen

8th edition

1259917061, 978-1259917066

Students also viewed these Accounting questions

Question

1. Show enthusiasm for the subject you teach.

Answered: 1 week ago

Question

n103,iawsia9,im8109 n103,iawsia9,im8109

Answered: 1 week ago

Question

What do they think of the project?

Answered: 1 week ago

Question

What state do you want to have reached at the end of the project?

Answered: 1 week ago

Question

Who is already informed about the project?

Answered: 1 week ago