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Question 7 a. DDD Ltd is a family company that specializes in the production of metallic gates. All jobs must go through its three production

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Question 7 a. DDD Ltd is a family company that specializes in the production of metallic gates. All jobs must go through its three production departments, that is Assembling. Welding and Spraying. Data for the year ended 4th* June 2015 is provided below: Budgeted Information The following information relates to JOB B145 for Carl Trials and testing cost of GHS6,400 is incurred on each job. It is company policy to make a margin of 35% of the profit on each job. Required: i) Calculate an appropriate overhead absorption rate for each department for the year ended 30 June, ii) Determine the total costs, for Job B145. iii) Determine the selling price for a unit of Job B145 a) Even though most companies experienced decline sales due to the novel corona virus, - many internet providers, including Vodafone experienced increased sales in demand for Turbonet. The data below shows the contribution income statement for its Vodafone Broad band Turbonet for the month of November 2022 i. Determine Vodafone's contribution margin ratios and variable cost ratios. ii. Estimates the company's break-even point in turbonets and in GHS. iii. The sales manager of Vodafone has proposed a GHS 500,000 increases in the monthly sales advertising budget. The sales manager believes that this would increase monthly sales by GHS 800,000. Should the advertising budget be increased? iv. The Quality Control Unit of Vodafone has recommended that the quality of the company's product be improved to win additional market share. The improved product would cost additional GHS 4 in variable cost per turbonet. The marketing department has predicted that monthly sales would increase by 150,000 barrels. Should the recommended improvement in product quality be accepted and carried out? v. Assume that marketing department suggests an adjustment in both selling price and the advertising budget. It argues that the combined effect of a reduction in selling price by GHS 5 and increase in the monthly advertising budget by GHS 500,000 would be a 40% increase in the quantity of turbonets sold in a month. Should the proposal be accepted and implemented? vi. Assume the recommendations in v above are implemented, estimate the degree of operating leverage, and correspondent effect of a 5% further increase in sales on net income

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