UNES bookshop, Mombasa Campus started selling a book which students are required to buy during the 2014/2015 academic year. By then, the current manager of the bookshop had not come. While perusing through the books of accounts, he stumbles upon the following information that were prepared by the previous manager Academic year profit sales Variable cost 2014/2015 30,000 160,000 80,000 2015/2016 70,000 240,000 120,000 Assume that the unit price, unit variable cost and fixed cost are the same for the two academic years. Required . Determine fixed costs Compute the book’s breakeven sales revenue. What profit will the bookshop make if sales for the book are worth sh. 1,200,000? Assuming bookshop wants to make a profit of sh. 400,000, what sales will it need to make? V. Determine the profit that the bookshop will make if it incurs variable costs totaling sh. 470,000
UNES bookshop, Mombasa Campus started selling a book which students are required to buy during the 2014/2015 academic year. By then, the current manager of the bookshop had not come. While perusing through the books of accounts, he stumbles upon the following information that were prepared by the previous manager Academic year profit sales Variable cost 2014/2015 30,000 160,000 80,000 2015/2016 70,000 240,000 120,000 Assume that the unit price, unit variable cost and fixed cost are the same for the two academic years. Required . Determine fixed costs Compute the book’s breakeven sales revenue. What profit will the bookshop make if sales for the book are worth sh. 1,200,000? Assuming bookshop wants to make a profit of sh. 400,000, what sales will it need to make? V. Determine the profit that the bookshop will make if it incurs variable costs totaling sh. 470,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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UNES bookshop, Mombasa Campus started selling a book which students are required to buy during the 2014/2015 academic year. By then, the current manager of the bookshop had not come. While perusing through the books of accounts, he stumbles upon the following information that were prepared by the previous manager
|
Academic year |
profit |
sales |
Variable cost |
|
2014/2015 |
30,000 |
160,000 |
80,000 |
|
2015/2016 |
70,000 |
240,000 |
120,000 |
Assume that the unit price, unit variable cost and fixed cost are the same for the two academic years. Required
- . Determine fixed costs
- Compute the book’s breakeven sales revenue.
- What profit will the bookshop make if sales for the book are worth sh. 1,200,000?
- Assuming bookshop wants to make a profit of sh. 400,000, what sales will it need to make? V. Determine the profit that the bookshop will make if it incurs variable costs totaling sh. 470,000
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