Hamza Limited produces and sells two products. Product A sells for £14 per unit and has a total variable cost of £9.90, while Product B sells for £19 per unit and has a total variable cost of £13.20. For every 4 units of Product A sold, three of product B are sold. Hamza Limited fixed costs are £141,850. Budgeted sales revenue is £448,500. Required: a) b) b) Calculate the Break-Even points in Units. a) Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process. Question 5 Evaluate at least 4 various types of budgets used in a large organisation.
Hamza Limited produces and sells two products. Product A sells for £14 per unit and has a total variable cost of £9.90, while Product B sells for £19 per unit and has a total variable cost of £13.20. For every 4 units of Product A sold, three of product B are sold. Hamza Limited fixed costs are £141,850. Budgeted sales revenue is £448,500. Required: a) b) b) Calculate the Break-Even points in Units. a) Calculate the Margin of Safety in Units. Evaluate the relevance of Break-Even Analysis in decision making process. Question 5 Evaluate at least 4 various types of budgets used in a large organisation.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Hamza Limited produces and sells two products.
Product A sells for £14 per unit and has a total variable cost of £9.90, while Product B
sells for £19 per unit and has a total variable cost of £13.20.
For every 4 units of Product A sold, three of product B are sold. Hamza Limited fixed
costs are £141,850. Budgeted sales revenue is £448,500.
Required:
a)
b)
b)
a)
Calculate the Break-Even points in Units.
b)
Calculate the Margin of Safety in Units.
Question 5
Evaluate at least 4 various types of budgets used in a large organisation.
Evaluate the relevance of Break-Even Analysis in
decision making process.
Discuss advantages and disadvantages of an annual budget?
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