Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Phonetex Plc manufactures and sells Ipads. The given details were extracted from its approved Budget for the Year ending 31st December 2013:

1691_budget details.jpg

There was no opening Inventory and it is expected which all units to be manufactured would be sold by the end of the year under review.

Required:

1) By using the above information, compute the given:

a) The Contribution to Sales Ratio.
b) The Break Even Point both in Units and Value.
c) The Margin of Safety as a Percentage.
d) The expected Net Profit or Loss for the Year.

2) If the Company targets a Post Tax Profit of Rs.4,000,000, the Fixed Costs would raise by 10% while the Variable costs would remain unaffected. Compute the number of units to be manufactured and sold to reach the expected target profit. Suppose Tax rate to be 20% and Production Capacity exists. (Give your answer to the closest unit).

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M96947

Have any Question? 


Related Questions in Financial Accounting

Accounting for managersdirections be sure to make an

Accounting for Managers Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College for grading. Financial Statement Analysis The following information relates to Harris Corpora ...

Bad debt expense calculationsone of my classes a few terms

Bad Debt Expense Calculations One of my classes a few terms ago asked for an example or a bit better explanation regarding calculating Bad Debt Expenses. The following is what I have come up with. There are three basic m ...

Assignmentin a survey 24 it professionals in chicago were

Assignment In a survey, 24 IT professionals in Chicago were asked how much their annual salary was for the year 2012. The results are shown below: $109,000 $ 65,000 $ 65,000 $ 59,000 $ 180,000 $ 101,325 $ 130,000 $95,000 ...

Accounting assignment- case study-qual support

Accounting Assignment- Case Study-Qual Support Corporation Plant Closing Case Study 1. QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number ...

Project part i peyton approved - budget variance reportyou

Project Part I Peyton Approved - Budget Variance Report You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the resu ...

Briefly describe a health care provider with which you are

Briefly describe a health care provider with which you are familiar and how that organization should position its offerings. Provide specific examples to support your response. Referring to the same health care provider, ...

What projects can restore the rights and dignity of people

What Projects can restore the rights and dignity of people and societies who may be, or are forced into motion due to social injustices, politics, economic pressures, climate change and war.

Assignmentalto company consists of the red river division

Assignment Alto Company consists of the Red River Division and the White Mountain Division. Red River produces and sells 100 pound bags of pottery clay which can either be sold to outside customers or to White Mountain. ...

Assignmentat this point you have examined three years of

Assignment At this point you have examined three years of financial statements for your firm and produced a proforma statement. You have also determined their sustainable growth rate as well. You have also learned about ...

Financial statement analysismy company is walmartpart

Financial Statement Analysis My company is Walmart. Part I • Perform at least one profitability ratio to measure the income and operating success of your selected company. • Perform at least one liquidity ratio to measur ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen