Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020 (7). (10 b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference (3). Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019 (4). (7) b. Explain the results of the current-test ratio (3). |(HINT: Include the minimum ratio recommended for the ratio in your answer.) Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 (4). (6)

Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020 (7). (10 b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference (3). Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019 (4). (7) b. Explain the results of the current-test ratio (3). |(HINT: Include the minimum ratio recommended for the ratio in your answer.) Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 (4). (6)

Name: 20192020Sales price per unitR15R19Variable cost per unitR6R7Fixed cos
Uploaded: 2022-11-18T00:26:54.000Z
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Description: 20192020Sales price per unitR15R19Variable cost per unitR6R7Fixed cost (FC) per annumR650 000R855 500Fixed cost per unitR3R4Current assetsR450 600R560 700Current liabilitiesR510 000R780 000Retained profitR21 809R17 600Net SalesR2 900 320R 3 100 100C

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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