Determine the budgeted profit for period, Financial Accounting

Assignment Help:

Questikon:

For Period Wilson Ltd has produced the following budget figures for Product X:

For the period, the budgeted fixed overhead is Rs100,000 and the budgeted sales are 12,000 units.

Required:

a) Determine the budgeted profit for Period 1.
b) Determine ( nearest whole unit):
(i) The Break Even Point (units)
(ii) The Margin of Safety (units)

c) The sales manager has suggested the given three options for the next period and has asked for an evaluation:

1) Reduce the selling price to Rs 75 per unit. This will increase sales by 2,000 units. Labour costs will increase by Rs 2 per unit and fixed overheads will decrease by Rs 10,000.

2) Increase the selling price to Rs 85 per unit. This will decrease sales by 4,000 units and decrease fixed overheads by Rs 10,000.

3) Reduce the selling price to Rs 70 per unit. This will increase sales by 5,000 units, increase fixed overheads by Rs 12,000 and decrease direct materials costs by Rs 3 per unit.


Related Discussions:- Determine the budgeted profit for period

Revenue recognition, Revenue recognition is a joint project of financial ac...

Revenue recognition is a joint project of financial accounting standard board and international accounting standard board.1.identify the roles and objectives of FASB and IASB?.2. W

VAT SYSTEM, RECOMENDATION REGARDING THE CURRENT SOUTH AFRICAN VAT SYSTEM

RECOMENDATION REGARDING THE CURRENT SOUTH AFRICAN VAT SYSTEM

Generally accepted accounting principles (gaap), Generally Accepted Account...

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Maximum loss method, a,b,c carried on business and their profit and loss ra...

a,b,c carried on business and their profit and loss ratio 3:4:5.they decided dissolve the partnership as on 1st july,2011.the following balance sheet..... creditors-10000 loan A/c-

Value added tax, 1. discuss how VAT system works by using relevant examples...

1. discuss how VAT system works by using relevant examples. 2. list and explain the VAT supply categories; provide relevant examples of each category. 3. provide a recommendation r

Registration of deeds of arrangement and assent of creditors, Registration ...

Registration of a D of A and assent of creditors A D of A will be void unless it is registered with the Registrar within 7 clear days after first execution and is properly stam

Describe what you understand by the term fund accounting, Question: (a)...

Question: (a) ‘Public accounting is often called fund accounting'. Describe what you understand by the term ‘fund accounting'. (b) "What's the difference between nation

Vat, a recommendation regarding the current south African vat system

a recommendation regarding the current south African vat system

Leverage, Evaluate the importance of leverage in financial management of a ...

Evaluate the importance of leverage in financial management of a small scale company

Write Your Message!

Captcha
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