Management Accounting 6.8.3 AIM Ltd supplies component J to furniture manufacturers. The marketing manager is of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Management Accounting 6.8.3 AIM Ltd supplies component J to furniture manufacturers. The marketing manager is of the opinion that if the selling price of component J is reduced, sales could increase by 25%. The following information is available: Present Proposed Selling price per unit Sales volume Variable costs Fixed costs Net profit Required R6 R5 100 000 units 25% more R400 000 R140 000 Same unit variable cost R140 000 R60 000 ? 6.8.3.1 6.8.3.2 6.8.3.3 Calculate the expected profit or loss on the marketing manager's proposal. Calculate the number of sales units required under the proposed price to make a profit of R60 000 Calculate the sales value required under the proposed price to make a profit of R60 000. Require 6.8.5.1 6.8.5 6.8 Management Accounting 6.8.3 AIM Ltd supplies component J to furniture manufacturers. The marketing manager is of the opinion that if the selling price of component J is reduced, sales could increase by 25%. The following information is available: Present Proposed Selling price per unit Sales volume Variable costs Fixed costs Net profit Required R6 R5 100 000 units 25% more R400 000 R140 000 Same unit variable cost R140 000 R60 000 ? 6.8.3.1 6.8.3.2 6.8.3.3 Calculate the expected profit or loss on the marketing manager's proposal. Calculate the number of sales units required under the proposed price to make a profit of R60 000 Calculate the sales value required under the proposed price to make a profit of R60 000. Require 6.8.5.1 6.8.5 6.8
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Lucy has just been promoted to a managerial position and given a new office. She is very fond of small Persian carpets and Native American paintings and wants to get some carpets and paintings for...
-
A new machine costing $100,000 is expected to save the McKaig Brick Company $15,000 per year for 12 years before depreciation and taxes. The machine will be depreciated as a 7-year class MACRS asset....
-
The number of employees on the payroll at a food processing plant is recorded at the start of each month. These data are provided in the file P12_03.xlsx. Perform a runs test and find a few...
-
Construct your key relations chart for this chapter.
-
Record the following transactions of the General Fund of Kinlaw County in its General Ledger. Also, use transaction analysis to show any effects on the GCA-GLTL accounts. 1. Payroll was approved and...
-
1) Calculate the present value of $500 that is to be received 10 years from today, assuming an annual interest rate of 9% 2) Calculate the future value of $100 that you have today at t=0; you will...
-
Describe the effects, according to both views (Classical and Keynesian), of an increase in the money supply. Explain what happens to real output and the price level. Use the AD-AS model diagram to...
-
A race car driving on a banked track that makes an angle \(\theta\) with the horizontal rounds a curve for which the radius of curvature is R. (a) As described in Problem 12, there is one speed...
-
A \(0.200-\mathrm{kg}\) small block is attached to an ideal spring with a spring constant of \(316 \mathrm{~N} / \mathrm{m}\) and is moving in simple harmonic motion on a horizontal frictionless...
-
A \(5.0-\mathrm{kg}\) cart is attached to a horizontal spring for which the spring constant is \(75 \mathrm{~N} / \mathrm{m}\). The system is set in motion when the cart is \(0.32 \mathrm{~m}\) from...
-
Sinusoidal water waves are generated by a 18 -W mechanical motor in an aquarium tank. How much the kinetic energy is in each \(1.25-\mathrm{Hz}\) wave generated? \(\cdot\)
-
In a particle accelerator, the particles in a beam of protons are traveling toward a target at a speed equal to \(0.100 c_{0}\). If the beam has a radius of \(0.100 \mu \mathrm{m}\) and carries a...
-
QUESTION SEVEN Kasama Ltd manufactures two products (Pa and Ta) using similar methods and equipment. The company absorbs overheads into product costs using absorption costing based on labour hours....
-
What is a manufacturing system?
-
Use the statement of cash flows started in Application Problem 18-2. The comparative balance sheet of Flexcor Corporation lists the following long-term liability and its ending balance for the...
-
Use the abbreviated comparative financial statements for West Coast Construction, Inc. in the Working Papers. Instructions: 1. Review the comparative income statement and identify the amounts of net...
-
Use the abbreviated comparative financial statements for Pacific Digital Corporation in the Working Papers. The comparative balance sheet for Pacific Digital Corporation lists an intangible asset,...
Study smarter with the SolutionInn App