XY Ltd sells 2 products which are manufactured in one plant. During the year 2009, it planned to sell the following quantities of each product Q1 Q2 Q3 Q4 X(Units) 90,000 230,000 300,000 80,000 Y(Units) 65,000 75,000 55,000 85,000 Product X sells at Ksh 10 per unit while Y at Ksh20 per unit. A study of past experience reveals that XY limited loses 3% of its billed revenue each year due to bad debts. REQUIRED: Prepare sales budget incorporating the given information.

XY Ltd sells 2 products which are manufactured in one plant. During the year 2009, it planned to sell the following quantities of each product Q1 Q2 Q3 Q4 X(Units) 90,000 230,000 300,000 80,000 Y(Units) 65,000 75,000 55,000 85,000 Product X sells at Ksh 10 per unit while Y at Ksh20 per unit. A study of past experience reveals that XY limited loses 3% of its billed revenue each year due to bad debts. REQUIRED: Prepare sales budget incorporating the given information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A business received an offer from an exporter for 10,000 units of product at a special price of $15.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $21 Unit manufacturing costs: Variable 12 Fixed 5 What is the amount of the gain or loss from acceptance of the offer? a. $8,000 loss b. $15,000 loss c. $35,000 gain d. $30,000 gain
Midlands Inc. had a bad year in 2019. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 80,000 units of product: net sales $2,000,000; total costs and expenses $2,235,000; and net loss $235,000. Costs and expenses consisted of the following. Total Variable Fixed Cost of goods sold $1,568,000 $1,050,000 $518,000 Selling expenses 517,000 92,000 425,000 Administrative expenses 150,000 58,000 92,000 $2,235,000 $1,200,000 $1,035,000 Management is considering the following independent alternatives for 2020. 1. Increase unit selling price 25% with no change in costs and expenses. 2. 3. Change the compensation of salespersons from fixed annual salaries totaling $200,000 to total salaries of $40,000 plus a 5% commission on net sales. Purchase new high-tech factory machinery that will change the proportion between variable and fixed cost of goods sold to 50:50. (a) Compute the break-even point in dollars for 2019.…
17. Jolo Corporation wants to revise the sales commission payment scheme. Currently, the 4 sales person receive a monthly salary of P5,000 each and a P5 for every unit sold. The new payment scheme will require the company to pay each sales person a monthly salary of P10,000 and an additional P3 for every unit sold. What is the number of units sold wherein the company will be indifferent between the two payment scheme? OA. 10,000 units OB. 8,571 units O C. 2,500 units OD. None of the above
Standard Appliances obtains refrigerators for $1520 less 29% and 5%. Standard's overhead is 16% of the selling price of $1595. A scratched demonstrator unit from their floor display was cleared out for $1240. a) What is the regular rate of markup on cost ? b)What is the rate of markdown on the demonstrator unit? c)What is the operating profit or loss on the demonstrator unit? d)What is the rate of markup on cost that was actually realized?
The following information concerns the company Plastic Products S.A. which produces a single product which is sold for 24 euros per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 and no final stocks of semi-finished products on 31/12/20X3. Then some additional information is given regarding the cost of the business during the 20X3 fiscal year. Cost element Direct materials Direct labor Variable general industrial overhead Fixed general industrial overhead Variable sales expenses Fixed sales expenses Value 480,000 euros 320,000 euros 160,000 euros 480,000 euros 160,000 euros 256,000 euros Calculate the operating result of the use 20X3 according to marginal and absorption costing.
ABC Corporation manufactures a product that gives rise to a by-product called Z. The only costs associated with Z are selling costs of P1 for each unit sold. ABC accounts for Z sales first b deducting its separable costs from such sales and then by deducting this net amount from cost of sales of the major product. This year, 1,000 units of Z were sold at P4 each. If ABC changes its method of accounting for Z sales by showing the net amount as additional sales revenue, ABC's gross margin would*a. decrease by P3,000b. increase by P4,000c. increase by P3,000d. be unaffected
Rowan coffee co. Incurs a loss from operations for the standard coffee line. Sales revenue for the line total $72,000 while incurring variable cost of goods sold of $19,500, variable selling expenses of 17,400 and a fixed cost of $ 49,000. How do I determine if the standard coffee line should be continued or discontinued??
Honda Fit Ltd purchased a new piece of machinery to expand the production output of its top-of-the-line car model. The marginal income ratio is 64% and the company has R3 200 000 as fixed costs. After the machine was purchased, the company achieved a sales revenue of R5 600 000. Determine the company’s margin of safety in percentage terms and comment.
Hh2. Account Kamp, Inc., sells specialized bicycle shoes. At year-end, due to a sudden increase in manufacturing costs, the replacement cost per pair of shoes is $55. The original cost is $43, and the current selling price is $50. The normal profit margin is 10% of the selling price, and the selling costs are $3 per pair. Using the lower of cost or market method under U.S. GAAP, which of the following amounts should each pair of shoes be reported on Kamp's year-end balance sheet?