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Solve this accouting problem as soon as possible.. please mail me (asmsayem008@gmail.com) whoever solve it...I need a personal tutor...Thanks Crown creative makes high quality Personal
Solve this accouting problem as soon as possible.. please mail me (asmsayem008@gmail.com) whoever solve it...I need a personal tutor...Thanks
Crown creative makes high quality Personal Digital Assistant, Sales and production data relating to the most recent year are given below: Sales (in unit) 2,800 Selling price per unit (Tk.) 265 Contribution margin ratio 60% Annual fixed costs (Tk.) 111,300 Management is anxious to improve the Company's profit performance and has asked for several items of information. Requirements: (i) Compute break-even point in units and sales in Taka. (ii) Assume that sales increases by Tk. 60,000 next year. If cost behavior patterns remain unchanged, by how much will company's net income increase? (ii) Refer to the original data. Assume that next year management wants to earn a Tk. 182,850 profit. How many units will have to be sold to meet this target profit? (iv) Refer to the original data. The sales manager is convinced that a 15% reduction in the selling price combined with a Tk. 56,100 increase in advertising cost could cause annual sales in units to increase by 40%, would you recommend that the company should do as the sales manager suggests? (v) Refer to the original data. Compute margin of safety both in taka and percentage form. (vi) Compute degree of operating leverage (DOL) at the present level of sales. Assume that the company likes to increase its net profit by 90% next year. By what percentage would you expect sales to increase? Use DOL to answer. Verify your answer by preparing income statementStep by Step Solution
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