Business, 04.08.2021 21:40 roxanneee2145

Alpha Company has produced the following budget. The company produces and sells one product only. GHSGHSSale32,000Direct Material 11,400Direct Labor6,000Overheads12,80030,200Prof its1,800Material cost are totally variable but labor and overhead are semi-variable. The fixed element of the above labor cost is GHS 1,600 and the fixed element of the overhead cost is GHS5,600. The unit selling price is GHS80. In order to develop sales the company plans next year to reduce the selling price of each unit by 5% this should increase the volume sold by 25%. For next year, fixed costs in total are expected to increase by GHS200.Required. a.Present a statement showing contribution per unit and in total. b.Calculate the present break-even point. c.Calculate the present margin of safety. d.Calculate the break-even point if the changes outlined above on selling price and quality are introduced next year. e.Advise on whether or not the price changes should be implemented.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:30

The distinction between a normal and an inferior good is

Answers: 3

Answer

Business, 22.06.2019 06:20

At a small store, a customer enters the front door on average every 8 minutes. a prior study indicated that the time between customers entering the front door during weekdays follows an exponential distribution. what is the probability that the time between customers entering the store on a weekday will be less than or equal to 7? select one: a. 62 b. 43 c. 1/8 d. 7/8 e. 58

Answers: 1

Answer

Business, 22.06.2019 07:30

Select the correct answer the smith family adopted a child. the adoption procedure took about three months, and the family incurred various expenses. will the smiths receive and financial benefit for the taxable year? a) they will not receive any financial benefit for adopting the child b) their income tax component will decrease c) they will receive childcare grants d) they will receive a tax credit for the cost borne for adopting the child e) they will receive several tax deductions

Answers: 3

Answer

Business, 22.06.2019 08:30

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Answers: 3

Answer

You know the right answer?

Alpha Company has produced the following budget. The company produces and sells one product only. GH...

Questions