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Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio i) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000

Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio i) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio ii) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000
Transcribed Image Text:Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio ii) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000
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