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JK has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Product Sales in units (thousands) Selling price per unit Variable cost per unit 10 К20 K14.00 K 10 К40 K8.00 L 50 K4 K4.20 M 20 K10 K7.00 Budgeted fixed costs are K240 000 per annum and total assets employed are K570000. Required: a). produce a profit-volume graph of the above data noting the important or significant figures and points on the graph b). comment on useful management points which can be read from the graph.

JK has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Product Sales in units (thousands) Selling price per unit Variable cost per unit 10 К20 K14.00 K 10 К40 K8.00 L 50 K4 K4.20 M 20 K10 K7.00 Budgeted fixed costs are K240 000 per annum and total assets employed are K570000. Required: a). produce a profit-volume graph of the above data noting the important or significant figures and points on the graph b). comment on useful management points which can be read from the graph.

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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QUESTION FOUR JK has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Product Sales in units (thousands) Selling price per unit Variable cost per unit 10 K20 K14.00 K 10 K40 K8.00 50 K4 K4.20 M 20 K10 K7.00 Budgeted fixed costs are K240 000 per annum and total assets employed are K570000. Required: a). produce a profit-volume graph of the above data noting the important or significant figures and points on the graph b). comment on useful management points which can be read from the graph.
Transcribed Image Text:QUESTION FOUR JK has prepared a budget for the next 12 months when it intends to make and sell four products, details of which are shown below: Product Sales in units (thousands) Selling price per unit Variable cost per unit 10 K20 K14.00 K 10 K40 K8.00 50 K4 K4.20 M 20 K10 K7.00 Budgeted fixed costs are K240 000 per annum and total assets employed are K570000. Required: a). produce a profit-volume graph of the above data noting the important or significant figures and points on the graph b). comment on useful management points which can be read from the graph.
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