The primary purpose of an enterprise budget is to estimate projected costs, revenues and profit per...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The primary purpose of an enterprise budget is to estimate projected costs, revenues and profit per unit for the enterprises. You have been called for Farm Manager Interviews at Bunda Farm. As part of the interview process, you have been given the following table with groundnuts data and estimates. Expected groundnuts yield Expected price Hours of labour required Cost of labour per hour Quantity of seed Expected seed price Quantity of herbicides Cost of herbicides Quantity of pesticides 100 bags weighing 50Kgs each MWK 500 per Kgs 8 hours MWK 200 per hour 2 bags weighing 20Kgs each MWK 100 per Kgs 10 bottles MWK 500 per bottle 10 bottles Cost of pesticides Amount of rented land Land charge Other costs of production MWK 250 per bottle 10 acres MWK 1000 per acre MWK 3000 Interest on total operating expenses 6.5% MWK 90,000 Depreciation and interest Using the concepts of enterprise budget a. Prepare an enterprise budget and comment on return to management b. Calculate cost of production (14 marks) (3 marks) c. Calculate the break-even yield (BEY) and break-even price (BEP), and explain the importance of the BEY and BEP to farmer managers (3 marks) The primary purpose of an enterprise budget is to estimate projected costs, revenues and profit per unit for the enterprises. You have been called for Farm Manager Interviews at Bunda Farm. As part of the interview process, you have been given the following table with groundnuts data and estimates. Expected groundnuts yield Expected price Hours of labour required Cost of labour per hour Quantity of seed Expected seed price Quantity of herbicides Cost of herbicides Quantity of pesticides 100 bags weighing 50Kgs each MWK 500 per Kgs 8 hours MWK 200 per hour 2 bags weighing 20Kgs each MWK 100 per Kgs 10 bottles MWK 500 per bottle 10 bottles Cost of pesticides Amount of rented land Land charge Other costs of production MWK 250 per bottle 10 acres MWK 1000 per acre MWK 3000 Interest on total operating expenses 6.5% MWK 90,000 Depreciation and interest Using the concepts of enterprise budget a. Prepare an enterprise budget and comment on return to management b. Calculate cost of production (14 marks) (3 marks) c. Calculate the break-even yield (BEY) and break-even price (BEP), and explain the importance of the BEY and BEP to farmer managers (3 marks)
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided we can estimate the projected costs revenues and profit per unit f... View the full answer
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date:
Students also viewed these accounting questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
You have been hired as an analyst by Redsaw Limited, which manufactures three different models of widget: Budget, Classic and Deluxe. Your task is to determine the product mix which results in the...
-
What is a Java package, and what is its purpose?
-
Describe the location and general function of the pineal gland.
-
For the following exercises, find all zeros of the polynomial function, noting multiplicities. f(x)=x + 4x + 4x
-
Use the technique discussed in Section9.4 to develop a GEE approach for zeroinflated Poisson model for count responses in longitudinal studies. Section9.4: 9.4 Marginal Models for Longitudinal Data...
-
A recent Gallup poll of 519 adults who flew in the past year (published in The Economist, June 16, 2007, p. 6) found the following their number 1 complaints about flying: cramped seats (45), cost...
-
Data Input Box: Number of mortgages in initial pool 500 Average mortgage balance $300,000 Initial mortgage pool balance $150,000,000 Prepayment rate 7.50% Mortgage rate 4.50% Servicing and Guarantee...
-
City Beverages Company provides a complete product line of beer, soft drink, and juice products. The following table shows the prices and quantities of the three products from the year of 2020 to...
-
What is the future value in 3 years of $2,000 invested in an account with a stated annual interest rate of 8 percent, compounded semiannually?
-
Modern physics Calculates, in joules and electron volts, the energy of a light particle with a wavelength of 1 1 5 0 nm . Show working.
-
A force of 16 N and a force of 24 N are acting on an object at the same point. Find the magnitude and direction of the resultant for each of the three cases that follow: Case A: when the two forces...
-
Determine the derivative for the following functions: a) y = -e* c) f(x) = (7)(x) [3] e) f(x)=sin(tan x) [2] b) f(x)= x(5) d) f(x) = sin(cos(x)) f) f(x) = e cost x
-
a. Plot the appropriate polarization curves for the following half cell reactions and determine the corrosion potential and corrosion rate (current density) assuming activation control of both the...
-
What are common arguments made by proponents of greater national government authority (and less state government authority)?
-
Find the equation of the plane passing through the points P 5,4,3 ,Q 4,3,1 and R 1,5,4
-
List at least three common controls for petty cash.
-
The sample size in a MUS sample is a function of what three factors?
-
In August 2011, the PCAOB barred two former Ernst & Young LLP (E&Y) employees from auditing public companies, alleging they provided misleading documents to PCAOB inspectors who were evaluating the...
-
What is the difference between internal and external audiences?
-
Like most major corporations, the U.S. Census Bureau has multiple, conflicting audiences, among them the president, Congress, press, state governments, citizens (both as providers and users of data),...
-
Listed here are several things an organization might like its employees to do: 1. Write fewer emails. 2. Volunteer at a local food pantry. 3. Volunteer to recruit interns at a job fair. 4. Attend...
Study smarter with the SolutionInn App