Connect Catering Services Table 1.1 Accounting figures for cakes Cakes April May Units Produced 2500 3000 Units Sold 2000 2000 Opening Stock Nil 500 Closing Stock 500 1000 Selling Price per Unit £8 £8 Variable Manufacturing cost per unit £4 £4 Fixed Non-Manufacturing Cost £4000 £4000 Fixed Manufacturing Overhead £15,000 £15,000 Connect Catering Services are looking to expand their markets to the retail sector and are looking to sell a range of vegetarian/vegan/non-vegetarian home-made pizzas to superstores. They have the following cost information. Direct material costs per Pizza: £3.50 Direct labour costs per Pizza: £1.50 Direct overhead costs per Pizza: £0.50 Other Expenses: Manager’s Salary: £5,000 Rent: £5,000 Insurance: £500 Advertising: £1,000 Utilities: £500 Initially, they are not too sure of the market and hence want to only sell 9’ Pizza at £9.50 per Pizza. 2 a) You are required to: Identify which costs are fixed and which costs are variable. Show the Break-even point using a Break-even graph hat would be the Margin of Safety if the organisation managed to sell 2500 Pizzas? If the manager’s salary is increased to £6,000, how will this affect the BEP in units and in sales value? prepare an Income Statement using Marginal and Absorption Costing techniques.
Connect Catering Services
Table 1.1 Accounting figures for cakes
|
Cakes |
April |
May |
|
Units Produced |
2500 |
3000 |
|
Units Sold |
2000 |
2000 |
|
Opening Stock |
Nil |
500 |
|
Closing Stock |
500 |
1000 |
|
Selling Price per Unit |
£8 |
£8 |
|
Variable |
£4 |
£4 |
|
Fixed Non-Manufacturing Cost |
£4000 |
£4000 |
|
Fixed Manufacturing Overhead |
£15,000 |
£15,000 |
Connect Catering Services are looking to expand their markets to the retail sector and are looking to sell a range of vegetarian/vegan/non-vegetarian home-made pizzas to superstores. They have the following cost information.
Direct material costs per Pizza: £3.50
Direct labour costs per Pizza: £1.50
Direct overhead costs per Pizza: £0.50
Other Expenses:
Manager’s Salary: £5,000
Rent: £5,000
Insurance: £500
Advertising: £1,000
Utilities: £500
Initially, they are not too sure of the market and hence want to only sell 9’ Pizza at £9.50 per Pizza.
2 a) You are required to:
- Identify which costs are fixed and which costs are variable.
- Show the Break-even point using a Break-even graph
- hat would be the Margin of Safety if the organisation managed to sell 2500 Pizzas?
- If the manager’s salary is increased to £6,000, how will this affect the BEP in units and in sales value?
prepare an Income Statement using Marginal and Absorption Costing techniques. the question are easy to answer please send the same within 30 mins its urgent
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
