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Chiyeyeye Enterprises Ltd sells equestrian boots and has three brands: Riding boots, work boots and casual wear. Looking ahead to the financial year ending 31st may, 2022, the directors of Chiyeyeye Enterprises ltd are faced with a budget loss of ZMW 10 000. This is based on the following data: Budgeted number of boots 10 000 Sales price per unit ZMW10 Variable cost per unit ZMW 6 Fixed cost ZMW 6000 Calculate the profit if the selling price increase to ZMW 12 per boot. Calculate the contribution margins for Chiyeyeye Enterprise ltd for each product? Based on your calculated contributions margin for each product line, what

Chiyeyeye Enterprises Ltd sells equestrian boots and has three brands: Riding boots, work boots and casual wear. Looking ahead to the financial year ending 31st may, 2022, the directors of Chiyeyeye Enterprises ltd are faced with a budget loss of ZMW 10 000. This is based on the following data: Budgeted number of boots 10 000 Sales price per unit ZMW10 Variable cost per unit ZMW 6 Fixed cost ZMW 6000 Calculate the profit if the selling price increase to ZMW 12 per boot. Calculate the contribution margins for Chiyeyeye Enterprise ltd for each product? Based on your calculated contributions margin for each product line, what

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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  1. Chiyeyeye Enterprises Ltd sells equestrian boots and has three brands: Riding boots, work boots and casual wear. Looking ahead to the financial year ending 31st may, 2022, the directors of Chiyeyeye Enterprises ltd are faced with a budget loss of ZMW 10 000. This is based on the following data:

Budgeted number of boots                    10 000

Sales price         per unit                      ZMW10

Variable cost per unit                            ZMW 6

Fixed cost                                           ZMW 6000

 

  1. Calculate the profit if the selling price increase to ZMW 12 per boot.
  2. Calculate the contribution margins for Chiyeyeye Enterprise ltd for each product? Based on your calculated contributions margin for each product line, what is the best decision by Chiyeyeye management on each product line?  

 

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