Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION FIVE Below is the data relating to a product called Wimble Per Unit (K) Selling price 25,000 9,000 6,000 4,000 3,000 Direct materials Direct

image text in transcribed

QUESTION FIVE Below is the data relating to a product called Wimble Per Unit (K) Selling price 25,000 9,000 6,000 4,000 3,000 Direct materials Direct Labour cost Variable overhead Fixed overhead cast The total fixed cost per period was K60 million. The company has budgeted to sell 12,000 units for the period. Required: () Calculate the Break Even Point (B. E.P) in units and in sales value (4 marks) (i) Calculate the Margin of safety (MOS) in units and percentage (4 marks) (5 marks) (4 marks) (ii) Calculate the number of units to be produced and sales value if the company is targeting a profit of K1.2 milion (iv) The Break Even Point in units and value if the selling price dropped by 5% but other variables remained constant (v) Explain any four major limitations of Cost Volume Profit (CVP) Analysis (8 marks) Total 25 Marks]

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

Issues In Management Accounting

Authors: David Ashton

2nd Edition

0131892509, 978-0131892507

More Books

Students also viewed these Accounting questions

Question

Describe the components of identity.

Answered: 1 week ago