Assume that you are organizing a party for which equipment hire and rent cost K20,000. You...
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Assume that you are organizing a party for which equipment hire and rent cost K20,000. You then sell tickets at K600 each and you buy a snack at K400 for every ticket sold. Required: Use this information to answer the following questions: (i) How many tickets must be sold to breakeven? (ii) How many tickets must be sold to make a profit of K800? What profit or loss will be made by selling 125 tickets? If the expected sales are 120 tickets, what is the margin of safety? (v) What must be the selling price required to achieve a profit of K900 if 9 tickets are sold, assuming all other costs do not change? Assume that you are organizing a party for which equipment hire and rent cost K20,000. You then sell tickets at K600 each and you buy a snack at K400 for every ticket sold. Required: Use this information to answer the following questions: (i) How many tickets must be sold to breakeven? (ii) How many tickets must be sold to make a profit of K800? What profit or loss will be made by selling 125 tickets? If the expected sales are 120 tickets, what is the margin of safety? (v) What must be the selling price required to achieve a profit of K900 if 9 tickets are sold, assuming all other costs do not change?
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
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