Ethio plc manufactures two types of tv sets

Assignment Help Accounting Basics
Reference no: EM131098443

Gafat Engineering Ethio Plc manufactures two types of TV sets - LCD and CRT - both having only one model. The LCD and CRT television sets sell for Br 9,000 and Br5,000, respectively. The company sells its products through its own stores and other outlets. Total fixed expenses are Br15,000,000 per month. Variable expenses and monthly sales data are given below: LCD CRTVariable expenses Br5,000 Br2,000Monthly sales in units 2,000 3,000)Determine breakeven total volume of sales and sales volume for each product.

b) Determine sales volume and sales revenue for the company to earn Br500,000 profit after 30% profit tax.

c) The company has planned to incur Br 200,000 monthly selling (promotional) expenses to increase sales volume for its LCD TV sets to 4,000. If the plan materializes and other things remain constant, determine breakeven sales volume and sales revenue for the company.

d) The company has planned to buy new and improved technology that reduces variable production expenses for its LCD TV set to Br4,000 while increasing its monthly fixed production costs by Br500,000. If the plan materializes and other things remain constant, determine breakeven sales volume and sales revenue for the company.

e) If the company is guaranteed with total sales volume of 10,000 TV sets in a given month, should it go for option "c" or "d" above given that sales mix remained constant as provided in each of the two options? Why? What if the guaranteed total sales volume of 7,000 instead of 10,000? Why? What should be the guaranteed total sales volume for the two options to provide equal profit to the company?

Reference no: EM131098443

Questions Cloud

Charles duhigg in the power of habit : Argue for or against any one claim made by Charles Duhigg in The Power of Habit: Why We Do What We Do in Life and Business using counter-arguments and rebuttals to strengthen your case.
Make up the management process : Discuss the four basic functions that make up the management process. How are they related to one another?
Investigate applications-laplacian pyramid blending : In this project, you will investigate two applications: Laplacian pyramid blending and hybrid images. You can use the former to make smooth transitions between arbitrary images, such as the fish sandwich depicted in Figure
Make up the management process : Discuss the four basic functions that make up the management process. How are they related to one another?
Ethio plc manufactures two types of tv sets : Gafat Engineering Ethio Plc manufactures two types of TV sets - LCD and CRT - both having only one model. The LCD and CRT television sets sell for Br 9,000 and Br5,000, respectively. The company sells its products through its own stores and other ..
Is possible to eat healthy meals when dining outside of home : Discuss which meal diary is more reasonable for you when considering work and family schedules? (100- to 200-words). Is it possible to eat healthy meals when dining outside of the home? Why or why not? Provide examples.
Importance of internal tools : 1. Explain how databases help ensure that organizations can maintain data integrity? 2. Explain the importance of internal tools that are available within a DBMS. Please provide an example of one of these tools?
Associated with manufacturers of consumer goods : Marketing research has traditionally been associated with manufacturers of consumer goods. Today, we are experiencing an increasing number of organizations, both profit and nonprofit, using marketing research. Why do you think this trend exists? G..
Most current results of fortune magazine : Review the most current results of FORTUNE Magazine's annual ranking of America's "100 Best Companies to Work For." Explore the website of at least three of the companies noted. Develop a two- to three- page paper that addresses the following:

Reviews

Write a Review

Accounting Basics Questions & Answers

  What will be the total relevant cost of 15400 units if they

troy engines ltd. manufactures a variety of engines for use in heavy equipment. the company has always produced all of

  How will sox impact your career as an accountant

Conduct research on the SOX Act and prepare an essay that addresses the following: .Briefly summarize the Act - How will SOX impact your career as an accountant? Do you feel that SOX is doing a good job of preventing accounting fraud? Explain.

  Treehouse company anticipates total sales for june and july

treehouse company anticipates total sales for june and july of 420000 and 398000 respectively. cash sales are normally

  Manufacturers good but inexpensive binoculars

Manufacturers good but inexpensive binoculars to sell to tourists

  Contribution of the land to the partnership

How much gain or income will Ben recognize on his contribution of the land to the partnership? What is the character of any gain or income recognized?

  Efficiency variance and favorable labor rate variance

Which of the following entries would correctly record the charging of direct labor costs to Work in Process given an unfavorable labor efficiency variance and a favorable labor rate variance?

  The balance in accounts receivable was 650000 at the

the balance in accounts receivable was 650000 at the beginning of the year and 350000 at the end of the year. credit

  What should the unit price be

Cara has received a special order from a foreign company for 5,000 units. There is sufficient capacity to fill the order without jeopardizing regular sales. Filling the order will require spending an additional $4,250 for shipping.

  Calculate the present value of plan b 3 flexon will

plan a svl offfers to let flexon pay 55000 each year for six years. the payments include interest at 14 per year plan b

  The following data are monthly sales of jeans at a local

the following data are monthly sales of jeans at a local department store. the buyer would like to forecast sales of

  How the impairment of goodwill recorded in accounting

Accounting records in the current year of Coronet Co. Indicate how the following items are recorded in the accounting records in the current year of Coronet Co.

  Also known as the federal wage and hour law

Antidiscrimination orders for employers with contracts involving federal funds.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd