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

Franchise, gershwin coporation obtained afranchise fron sonic hedgeehog inc...

gershwin coporation obtained afranchise fron sonic hedgeehog inc .for a cash payment of $ 120000 on april 1,2010 . the franchise grants gershwin the right to sell certain product a

Adjustment entry, 1) A sales discount correctly taken by the charge custome...

1) A sales discount correctly taken by the charge customer was debited to Sales at the time the entry was recorded. This error will cause. A) the net income for the period to be un

Draw budget constraint for cooking oil and flour, 1. You can buy any quanti...

1. You can buy any quantity of cooking oil at $5 per litre and any quantity of flour at $2 per kilo. You have allocated $20 to spend on cooking oil and flour.    (a) If you choo

Calculation of leverage ratios, Calculation of Leverage ratios  - ...

Calculation of Leverage ratios  -                     2008 2009 2010 U EBIT or Oper

Discuss the advantages, Discuss the advantages and disadvantages of differe...

Discuss the advantages and disadvantages of different types of financing: 1. Issuing bonds 2. Borrowing from Bank 3. Equity financing

What do you mean by fiscal year, Q. What do you mean by Fiscal Year? Fi...

Q. What do you mean by Fiscal Year? Fiscal Year - Period of 12 consecutive months chosen by an entity as its ACCOUNTING period that may or may not be a calendar year. Fixed Ass

Resolutions of creditors-bankruptcy, RESOLUTIONS OF CREDITORS Normally,...

RESOLUTIONS OF CREDITORS Normally, decisions at meetings of creditors are taken by ordinary resolution, viz., a resolution passed by a simple majority in value of creditors pre

Explain a reduction in expected inflation - prices and wages, Assume that p...

Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the following on real money

What should be didde''s 2011 earnings per common share, Didde Co. had 300,0...

Didde Co. had 300,000 shares of common stock issued and outstanding at December 31, 2010. No common stock was issued during 2011. On January 1, 2011, Didde issued 200,000 shares of

Review, objective of working capital management and profitability

objective of working capital management and profitability

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