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    Task 3:::units To Be Sold To Earn A Profit of $30000: Fixed Cost + Profit

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    Fathmath ShaXra
    This document contains calculations and financial analysis for multiple tasks. It summarizes: 1) A calculation to determine the number of units (15,000) that must be sold to earn a profit of $30,000 given fixed costs of $60,000 and a contribution per unit of $6. 2) An analysis showing that with a $10,000 reduction in fixed costs and 10% reduction in variable costs, profits would increase to $9,200 selling 8,000 units. 3) Financial ratios for 2012 and 2013 including gross profit margin, net profit margin, return on capital employed, gearing, inventory days, interest cover, receivable days, payable days, and current and

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    Task 3:::units To Be Sold To Earn A Profit of $30000: Fixed Cost + Profit

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    Fathmath ShaXra
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    This document contains calculations and financial analysis for multiple tasks. It summarizes: 1) A calculation to determine the number of units (15,000) that must be sold to earn a profit of $30,000 given fixed costs of $60,000 and a contribution per unit of $6. 2) An analysis showing that with a $10,000 reduction in fixed costs and 10% reduction in variable costs, profits would increase to $9,200 selling 8,000 units. 3) Financial ratios for 2012 and 2013 including gross profit margin, net profit margin, return on capital employed, gearing, inventory days, interest cover, receivable days, payable days, and current and

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    This document contains calculations and financial analysis for multiple tasks. It summarizes: 1) A calculation to determine the number of units (15,000) that must be sold to earn a profit of $30,000 given fixed costs of $60,000 and a contribution per unit of $6. 2) An analysis showing that with a $10,000 reduction in fixed costs and 10% reduction in variable costs, profits would increase to $9,200 selling 8,000 units. 3) Financial ratios for 2012 and 2013 including gross profit margin, net profit margin, return on capital employed, gearing, inventory days, interest cover, receivable days, payable days, and current and

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    18 views4 pages

    Task 3:::units To Be Sold To Earn A Profit of $30000: Fixed Cost + Profit

    Uploaded by

    Fathmath ShaXra
    This document contains calculations and financial analysis for multiple tasks. It summarizes: 1) A calculation to determine the number of units (15,000) that must be sold to earn a profit of $30,000 given fixed costs of $60,000 and a contribution per unit of $6. 2) An analysis showing that with a $10,000 reduction in fixed costs and 10% reduction in variable costs, profits would increase to $9,200 selling 8,000 units. 3) Financial ratios for 2012 and 2013 including gross profit margin, net profit margin, return on capital employed, gearing, inventory days, interest cover, receivable days, payable days, and current and

    Copyright:

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    of 4

    Task 3:::Units to be sold to earn a profit of $30000: Fixed cost + Profit

    Contribution per unit


    So, $60 000 + $30000
    (20-14)

    so, 15 000 units.

    Current profit when Fixed cost decrease by $10 000 and variable cost decrease by $10%:
    VC = $14 10% of 14 = $12.6; contribution = $20 - $12.6 = $7.4; 8,000units x $7.4= $59 200 FC $50
    000 = Profit $9,200;
    Task 4:
    GP margin: GP/Sales X 100

    2012
    39.7/145x100=27.38%

    2013
    40/160x100=25%

    NP margin:PBIT/Salesx100

    13.7/145x100=9.44%

    10/160x100=6.25%

    ROCE: PBIT/capital employedx100

    13.7/95x100=14.42%

    10/98x100=10.20%

    Gearing: debt/capital employedx100

    38/95x100=40%

    38/98x100=38.77%

    Inventory days:Inventory/COSx365

    32/105.3x365=110.9da
    ys
    36/120x365=109.5days

    Interest cover:PBIT/Interest

    13.7/3.3=4.15times

    10/3.6=2.78times

    Receivable days:
    Receivable/creditsalesx365

    24/145x365=60.41day
    s

    41/160x365=95.53days

    Payable days: Payable/COSx365

    11/105.3x365=38.13da
    ys
    17/120x365=51.71days

    Current ratio: CA/CL


    Quick ratio: CA-Inventory/CL
    Task: 5

    72/12=6:1

    78/25=3.12:1

    40/12=3.33:1

    42/25=1.68:1

    Normal screen :
    Customer variance: Budgeted customer-Actual customer x
    budgeted price
    (4500-44)x5.25= $525 (A)
    Price variance: (Budgeted price-Actual price) x
    Actual customers
    ($5.25-$5.5)x4400=$1100 (F)
    Total variance: (4500x5.25)-(4400x5.5)=575(F)

    hope u can do it for New screen


    Change your Annual membership. Its 1,000,000x60%= 600 000
    Part time Instructor salary: $54 000/12=$4,500 x 3instructor=$7,500
    Overdraft facility if balance comes as negative then only its taken from bank. whenits taken then you pay interest.
    (refer this to your teacher)
    After these changes find the balance.

    Task: 7.colormix:
    Years

    Cash flow
    1
    2
    3
    4

    (8000+scrap)
    5

    PV 10%

    16,500
    22,000
    22,000
    15,000

    0.909
    0.826
    0.751
    0.683

    20,500

    0.62

    NPV
    14998
    .5
    18172
    16522
    10245
    12710
    72647
    .5

    Net Present Value: Net cash flow comes to $72,647.5 minus the investment (62,500-scrap12,500)=$22,647.5
    Pay back method:
    cumulative
    cash inflow
    16,500
    38,500
    60,500

    In the 3rd year your income is 60,500 a difference of $2,000 has to be recovered in the 4 th year but it
    will take only some months(62,500 60,500)calculated as: 1 full year income is 15,000 so to earn
    2,000 how many months it will take?

    2,000 x 12/5,000=1.6months; so the

    payback period is 3years and 1.6 months.


    3

    Average Rate of return: Average profit /Investment x 100:


    (16,500+22000+22000+15000+20500)/5=19,200;so 19,200/50,000x100=38.4%

    Print plus:
    Years

    Cash flow

    PV 10%

    6,600

    0.909

    13,600

    0.826

    13,600

    0.751

    4
    5

    5,600
    11,600

    0.683
    0.62

    NPV
    5999.
    4
    11233
    .6
    10213
    .6
    3824.
    8
    7192
    38463
    .4

    No Payback for print plusit going into loss. ARR you calculate understanding the previous one.
    Task 8: Marginal costing: Variable costs= $5+$10=$15 x markup 40%=$6;
    Absorption costing: 300+40+960(both VC n FC)=1,300+40% of 1300= 1,820 selling price.

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