BU PLC., manufactures and sells a unique product known as B.Sc. the selling price of which...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
BU PLC., manufactures and sells a unique product known as B.Sc. the selling price of which is 20. The summarized profit and loss statement for 31/12/2007 is as follows: N 600,000 Sales Direct Material Direct Wages Variable Prod. O/H Fixed Production O/H Selling & Distribution Administration Net Profit before tax Less Tax at 40% Profit after Tax Required 11. 111. iv. 90,000 120,000 60,000 75,000 56,000 45.000 446,000 154,000 61.600 92.400 Calculate the break-even point both in units and sales value. Calculate the sales value required to achieve a net profit before tax 15% of total revenue. Assuming no change in unit selling price and cost structure, calculate the percentage increase in sales volume required in the current year to produce a profit before tax 20% higher than that of 2007 result. Determine the volume of sales in naira the company must achieve in 2008 to maintain 2007 net profit if the selling price remains at 20 and variable cost per unit increase by 12%. BU PLC., manufactures and sells a unique product known as B.Sc. the selling price of which is 20. The summarized profit and loss statement for 31/12/2007 is as follows: N 600,000 Sales Direct Material Direct Wages Variable Prod. O/H Fixed Production O/H Selling & Distribution Administration Net Profit before tax Less Tax at 40% Profit after Tax Required 11. 111. iv. 90,000 120,000 60,000 75,000 56,000 45.000 446,000 154,000 61.600 92.400 Calculate the break-even point both in units and sales value. Calculate the sales value required to achieve a net profit before tax 15% of total revenue. Assuming no change in unit selling price and cost structure, calculate the percentage increase in sales volume required in the current year to produce a profit before tax 20% higher than that of 2007 result. Determine the volume of sales in naira the company must achieve in 2008 to maintain 2007 net profit if the selling price remains at 20 and variable cost per unit increase by 12%.
Expert Answer:
Answer rating: 100% (QA)
To calculate the breakeven point we need to determine the number of units and sales value required to cover all costs The breakeven point occurs when the total revenue equals total costs First lets ca... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging. The company has a special patented lining made that it uses in...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Memotec, Inc., manufactures and sells a unique electronic part. Operating results for the first three years of activity were as follows (absorption costing basis): Sales dropped by 20% during Year 2...
-
Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kims property holdings follows. Determine Kims property factors for the two states assuming...
-
Refer to the data on y = house selling price and x = taxes paid in Exercise 11-5. Find a 95% confidence interval on each of the following: (a) B1 (b) B0 (c) Mean selling price when the taxes paid are...
-
Carbon monoxide is burned with excess air at 1 atm in an adiabatic reactor. The reactants are fed at 25C and the final temperature (i.e., the adiabatic flame temperature) is 1400C. (a) Calculate the...
-
Joe, the nurse manager for CCU, counsels Registered Nurse Bob about his errors in charting and tells Bob that the next time an error is made, a formal warning will be put in his personnel file. Bob...
-
Solstice Company determines on October 1 that it cannot collect $ 50,000 of its accounts receivable from its customer P. Moore. Apply the direct write-off method to record this loss as of October 1.
-
This example is based off a Boeing problem from an older edition of our corporate text book which has been modified by me. I recommend rounding your numbers in millions to make it easier to manage....
-
The finance director of RM plc is considering several investment projects and has collected the following information about them. Projects D and E are mutually exclusive. The capital available for...
-
The total sales of a company (in millions of dollars) t months from now are given by S(t) = 0.02t + 0.3t + 3t+5. (A) Find S'(t). (B) Find S(7) and S'(7) (to two decimal places). (C) Interpret S(13) =...
-
Find all critical numbers of the foll wing function f(t) = 6t/5 8t2/5
-
If the scientist who made Statement 3 suspects that the uncertainty in the number is roughly 0 . 1 \ deg C , how should the number be reported?
-
Simplify the expression. STEP 1: Subtract exponents. X -3 X = X -3 - STEP 2: Simplify the exponent. STEP 3: Rewrite with positive exponents.
-
Simplify the radical expression. -40x 6 Write your answer in the form A, B, or AB, where A and B are constants or expressions in x. Use at most one radical in your answer, and at most one absolute...
-
Simplify the radical expression. 54096x6 5 4x
-
For the co-planar force system shown below, determine by calculation, the resultant force in magnitude and direction. Give your answers to 2 decimal places. For the co-planar force system shown...
-
You are a Loan Officer with an Investment Bank. Today you need to set your lending parameters. They are: LTV: 55% 10 Year T-Bill: TBD Rate Markup: 300 Basis Points Term: 30 Years Amortization: 30...
-
Describe what is meant by a pull production system.
-
Dexter Products, Inc., manufactures and sells a number of items, including an overnight case. The company has been experiencing losses on the overnight case for some time, as shown on the following...
-
If a market price for a product can be determined, why isnt it always the best transfer price?
-
Define cash equivalents and give three examples.
-
B-You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high-tech research firm approached B-Yous owner with an offer to contract...
-
Two supplementary schedules frequently accompany a statement of cash flows prepared by the direct method. Briefly explain the content of these schedules.
Study smarter with the SolutionInn App