Answered: Exercise 6 DSD Ltd has budgeted to…

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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24
Class Exercise 02 Z Ltd manufacture and market a slimming drink which they sell for Rs 20.00 per bottle. The current output is 4,000 bottles per month which represents 80% of the capacity. They have the opportunity to utilize their surplus capacity by selling their product at Rs. 13.00 per bottle to Cargills who will sell it as a "own label" product. The total cost for the last month were Rs. 56,000 of which Rs. 16,000 were fixed costs, representing a total cost of Rs. 14.00 per bottle. Based on the above data should Z Ltd accept the order by Cargills? What 'other' factors should be considered?
Câu 8. Brite Ltd makes lamps with a selling price of £70 per lamp. Budgeted production and sales volume is 800 lamps per month. During July 800 lamps were made and 700 lamps were sold. There was no opening inventory. The variable cost per lamp is £30. Fixed costs in July were, as budgeted, £4,000. Using absorption costing, what is the profit for July? A. £49,000 B. £24,000 C. £21,000 D. £24,500
q9: Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20,000 Rs. Rs. Rs. Sales 800,000 1,200,000 1,600,000 Manufacturing cost: Variable 300,000 450,000 600,000 Fixed 200,000 200,000 200,000 Total manufacturing cost 500,000 650,000 800,000 Marketing and other expenses: Variable 200,000 300,000 400,000 Fixed 160,000 160,000 160,000 Total Marketing and other expense 360,000 460,000…
QUESTION 8 Maple Ltd sells a single product for £150. The Variable cost for the product is £63. The fixed cost for the year is estimated at £90,000. The breakeven point for the product is? a. 1023 units b.1429 units c. 1452 units d. 1034 units
Q3: Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20,000 Rs. Rs. Rs. Sales 800,000 1,200,000 1,600,000 Manufacturing cost: Variable 300,000 450,000 600,000 Fixed 200,000 200,000 200,000 Total manufacturing cost 500,000 650,000 800,000 Marketing and other expenses: Variable 200,000 300,000 400,000 Fixed 160,000 160,000 160,000 Total Marketing and other exp 360,000 460,000 560,000 Operating…
Question 4 Ali Limited produces and sells two products. Product A sells for £12 per unit and has a total variable cost of £7.90, while Product B sells for £17 per unit and has a total variable cost of £11.20. For every 4 units of Product A sold, three of product B are sold. Ali Limited fixed costs are £131,850. Budgeted sales revenue is £428,500. Required: a) b) b) Calculate the Break-Even points in Units. Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process.
Sh17
q4: Flexible budget for a product as prepare by Anchor Ltd, is given below: Sales – unit 10,000 15,000 20,000 Rs. Rs. Rs. Sales 800,000 1,200,000 1,600,000 Manufacturing cost: Variable 300,000 450,000 600,000 Fixed 200,000 200,000 200,000 Total manufacturing cost 500,000 650,000 800,000 Marketing and other expenses: Variable 200,000 300,000 400,000 Fixed 160,000 160,000 160,000 Total Marketing and other expen 360,000 460,000 560,000 Operating…
Q1
The fixed budget for 20,600 units of production shows sales of $473,800; variable costs of $61,800; and fixed costs of $141,000. If the company actually produces and sells 26,700 units, calculate the flexible budget income.

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