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

Larned corporation recorded the following transactions for

Larned Corporation recorded the following transactions for the just completed month. a. $75,000 in raw materials were purchased on account. b. $73,000 in raw materials were requisitioned for use in production. Of this am ...

If a contract contains elements of both a service and a

If a contract contains elements of both a service and a good: a. The UCC says such a contract is always considered a sale of a good and thus subject to the UCC b. The UCC says such a contract is always considered a servi ...

Johnson chemicals is considering an investment project the

Johnson Chemicals is considering an investment project. The project requires an initial $3 million outlay for equipment and machinery. Sales are projected to be $1.5 million per year for the next four years. The equipmen ...

Complete the balance sheet and sales information below for

Complete the balance sheet and sales information below for Iceberg Industries using the following financial data: Debt ratio: 50% Quick Ratio: .80x Total Assets Turnover: 1.5x Days Sales Outstanding: 36.0 days Gross Prof ...

A characteristic of managerial accounting would indicate

A characteristic of managerial accounting would indicate that it is governed by generally accepted accounting principles. places emphasis on special-purpose information. pertains to the entity as a whole and is highly ag ...

Financial accounting information about a business

Financial accounting information about a business organization: Question 1 options: A) is primarily reported to outsiders through a set of reports called financial statements B) is made available to investors and credito ...

Cash flow reporting please respond to the followinguse the

"Cash Flow Reporting" Please respond to the following: Use the Internet or the Strayer Library to research the difference in the cash flow reporting requirements between US GAAP and IFRS. Given the complexities related t ...

Fashion jewelers uses the perpetual inventory system on

Fashion Jewelers uses the perpetual inventory system. On April? 2, Fashion sold goods with a cost of $8,000 for $10,000 with terms of 33?/15, ?n/30. On April? 4, the customer reported damaged goods and Fashion granted a ...

Write answer of following questions in at least 200 words

Write Answer of following questions in at least 200 words each. Questions: 1. Can you discuss how to compute earnings and profits (E&P)? What income is deferred to a later year when computing taxable income, but is inclu ...

1 when the parent owns 80 of the subsidiary and accounted

1. When the parent owns 80% of the subsidiary and accounted for the investment under the equity method, what is the purpose of consolidating entry D? Removes the controlling interest share of dividends accrued Removes th ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate