V. Current ratio QUESTION 3 The following information relate to tow businesses: Polihali (Pty) Ltd M...
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V. Current ratio QUESTION 3 The following information relate to tow businesses: Polihali (Pty) Ltd M 20 12 20,000 Unit selling price Unit variable cost Fixed costs Contributin ratio Graphics (Pty) Ltd M 20 10 20,000 20 де аде O (a) Calculate the Break-even sales units. (b) Calculate the Sales revenue at break-even point (c) Explain the meaning of Margin of Safety. [4] [4] [1] (d) Using planned sales units of 5,000 calculate the Percentage Margin of Safety for the two companies and indicate and explain the business that is performing better. [6] (e) Assuming there is a 20% reduction in the unit selling price of both companies and all other costs remaining unchanged, calculate the new break-evens sales revenue. [6] [4] (f) State TWO assumptions of CVP analysis. CD All other vanable renetin Constant Ⓒ sugle product or 3 Constar Sales mix Serwis - variable fixed cost Selurs-vanable fuxed cost Contribution maatsc 66 nor gun es so yo contribution nacrgin= Contribution mugur fixed cost 20000 x20=41 Selling 5° 00 [5] 10 plamed sales planea sak - break evenborg planned sales wat 20 X 500 - 0.5 12 x 20 sert rt sc Page 10 of 10 V. Current ratio QUESTION 3 The following information relate to tow businesses: Polihali (Pty) Ltd M 20 12 20,000 Unit selling price Unit variable cost Fixed costs Contributin ratio Graphics (Pty) Ltd M 20 10 20,000 20 де аде O (a) Calculate the Break-even sales units. (b) Calculate the Sales revenue at break-even point (c) Explain the meaning of Margin of Safety. [4] [4] [1] (d) Using planned sales units of 5,000 calculate the Percentage Margin of Safety for the two companies and indicate and explain the business that is performing better. [6] (e) Assuming there is a 20% reduction in the unit selling price of both companies and all other costs remaining unchanged, calculate the new break-evens sales revenue. [6] [4] (f) State TWO assumptions of CVP analysis. CD All other vanable renetin Constant Ⓒ sugle product or 3 Constar Sales mix Serwis - variable fixed cost Selurs-vanable fuxed cost Contribution maatsc 66 nor gun es so yo contribution nacrgin= Contribution mugur fixed cost 20000 x20=41 Selling 5° 00 [5] 10 plamed sales planea sak - break evenborg planned sales wat 20 X 500 - 0.5 12 x 20 sert rt sc Page 10 of 10 V. Current ratio QUESTION 3 The following information relate to tow businesses: Polihali (Pty) Ltd M 20 12 20,000 Unit selling price Unit variable cost Fixed costs Contributin ratio Graphics (Pty) Ltd M 20 10 20,000 20 де аде O (a) Calculate the Break-even sales units. (b) Calculate the Sales revenue at break-even point (c) Explain the meaning of Margin of Safety. [4] [4] [1] (d) Using planned sales units of 5,000 calculate the Percentage Margin of Safety for the two companies and indicate and explain the business that is performing better. [6] (e) Assuming there is a 20% reduction in the unit selling price of both companies and all other costs remaining unchanged, calculate the new break-evens sales revenue. [6] [4] (f) State TWO assumptions of CVP analysis. CD All other vanable renetin Constant Ⓒ sugle product or 3 Constar Sales mix Serwis - variable fixed cost Selurs-vanable fuxed cost Contribution maatsc 66 nor gun es so yo contribution nacrgin= Contribution mugur fixed cost 20000 x20=41 Selling 5° 00 [5] 10 plamed sales planea sak - break evenborg planned sales wat 20 X 500 - 0.5 12 x 20 sert rt sc Page 10 of 10 V. Current ratio QUESTION 3 The following information relate to tow businesses: Polihali (Pty) Ltd M 20 12 20,000 Unit selling price Unit variable cost Fixed costs Contributin ratio Graphics (Pty) Ltd M 20 10 20,000 20 де аде O (a) Calculate the Break-even sales units. (b) Calculate the Sales revenue at break-even point (c) Explain the meaning of Margin of Safety. [4] [4] [1] (d) Using planned sales units of 5,000 calculate the Percentage Margin of Safety for the two companies and indicate and explain the business that is performing better. [6] (e) Assuming there is a 20% reduction in the unit selling price of both companies and all other costs remaining unchanged, calculate the new break-evens sales revenue. [6] [4] (f) State TWO assumptions of CVP analysis. CD All other vanable renetin Constant Ⓒ sugle product or 3 Constar Sales mix Serwis - variable fixed cost Selurs-vanable fuxed cost Contribution maatsc 66 nor gun es so yo contribution nacrgin= Contribution mugur fixed cost 20000 x20=41 Selling 5° 00 [5] 10 plamed sales planea sak - break evenborg planned sales wat 20 X 500 - 0.5 12 x 20 sert rt sc Page 10 of 10
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