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

Capital recovery factor, Equation illustrates the relationship in between P...

Equation illustrates the relationship in between PVA n , A, K and n. So manipulating this a bit: We find that A = PVA n [(k (1 + k) n )/((1 +k) n - 1)] [(k (1 + k) n )/(

Corporate enterprise group, Q. Corporate Enterprise group? In order to ...

Q. Corporate Enterprise group? In order to have better and systematic participation of labour in management for improvement in working of Railway system and appropriate changes

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

Reasons that influence firm''s degree of transaction exposure, Define reaso...

Define reasons that influence a firm's degree of transaction exposure? What reasons influence a firm's degree of ‘transaction exposure' in a certain currency? For each reason d

What is the cash flow from assets for 2010, The following question are base...

The following question are based on above table:- Question 1 What is the change in net working capital from 2009 to 2010? Question 2 What is net capital spending for 20

lifo, How do I prepare a partial income statement under each inventory met...

How do I prepare a partial income statement under each inventory method?

Abraham maslow''s hierarchy of needs theory, Motivation is said to be an in...

Motivation is said to be an internal state that energises an individual to engage in certain types of behaviours. This process is triggered when the individual experiences certain

Determine mutually exclusive projects - profitability index, 1. What is the...

1. What is the internal rate of return for a project that has a net investment of $150,000 and net cash flows of $40,000 for 5 years? 2. Using the profitability index, which of

Corporation accounting oversight board, PCAOB - Public Corporation Accounti...

PCAOB - Public Corporation Accounting Oversight Board, a private-sector, non-profit corporation created by Sarbanes-Oxley Act of 2002, to oversee AUDITORs of public companies in or

Effect of bankruptcy-bankruptcy and liquidation, Effect of bankruptcy A...

Effect of bankruptcy A D of A made for the benefit of creditors generally will be an act of bankruptcy and therefore a bankruptcy petition may be presented against the debtor w

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