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.
Chapter1: Financial Statements And Business Decisions
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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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