BAU 08101: Transport Accounting and Finance

Suppose cost (C) and revenue (R) functions are as given

C = 100 + 5Q2 and R = 150Q – 2.5Q2
Required
i. Profit maximization output
ii. Profit function
iii. Maximum profit
iv. Total cost at a profit maximization output
v. Total revenue at profit maximization output

BMU 07312: Business Accounting and Costing

Enter the following transaction in a single column cash book of Mr. Faisal Salum

TZS
2022 Jan. 1 Started business with cash 1,000
3 Purchase goods for cash 500
4 Sold goods 1,700
5 Cash received from Sopu 200
12 Paid Bajana 150
14 Bought furniture 200
15 purchased goods from Dube on credit 2,000
20 Paid electricity charges 225
24 Paid salaries 250
28 Receive commission 75
 BAU 07311: Cost Accounting
A company has two products with the following unit costs for a period.

Product A Product B

Tshs/unit Tshs/unit

Direct materials 1.20 2.03

Direct labour 1.40 1.50

Variable production overheads 0.70 0.80

Fixed production overheads 1.10 1.10

Variable other overheads 0.15 0.20

Fixed other overheads 0.50 0.50

Production and sales of the two products for the period were:

Product A Product B

(000 units) (000 units)

Production 250 100

Sales 225 110

Production was at normal levels. Unit costs in opening stock were the same as those for
the period listed above.

Required

I. Calculate Contribution Margin and Fixed costs for each product

II. Calculate the break-even sales revenue for the period (to the nearest Tshs 000)
based on the above mix of sales. The selling prices of product A and B were Tshs
5.70 and Tshs 6.90 per unit, respectively.

III. If the selling price is reduced by 5% how the revised selling price does affect the
Break Even Point?