Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

Gafat Engineering Ethio Plcmanufactures twotypes of TV sets-LCD andCRT-bothhaving only one model. The LCD and CRT television sets sell forBr9,000andBr5,000,respectively.

The company sells its products through its own stores and other outlets.Totalfixed expensesareBr15,000,000per month. Variable expenses and monthly sales data aregiven below:LCDCRTVariable expensesBr5,000Br2,000Monthly sales in units2,0003,000Required:(unless stated figures should be computed forone month)a)Determine breakeventotal volume ofsalesand sales volume for each product.b)Determine sales volume and sales revenue for the company to earn Br500,000 profit after30% profit tax.c)The companyhasplanned to incur Br200,000monthlyselling (promotional)expenses toincrease sales volume for its LCD TV sets to 4,000. If the plan materializesand otherthings remain constant, determinebreakevensales volume and sales revenuefor thecompany.d)The companyhas planned tobuy new and improved technology that reduces variableproductionexpenses for its LCD TV set to Br4,000 while increasing its monthly fixedproductioncosts by Br500,000.

If the plan materializesand other things remain constant,determinebreakevensales volume and sales revenue for the company.e)If the company is guaranteed with total sales volume of10,000 TV setsin a given month,shoulditgo foroption "c"or"d" abovegiven that sales mix remainedconstantasprovided in each of the two options? Why?What if the guaranteed total sales volume of7,000 instead of 10,000? Why?What should be the guaranteed total sales volume for thetwo options to provide equal profit to the company?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91779478

Have any Question?


Related Questions in Accounting Basics

Question - the machardee plumbing company has common stock

Question - The MacHardee Plumbing Company has common stock outstanding. The stock paid a dividend of $2.00 per share last year, but the company expects that earnings and dividends will grow by 25% for the next two years ...

Question 1calculate total revenues and expenditures for

Question: 1. Calculate total revenues and expenditures for each year. 2. Calculate each revenue source and expenditure category as a percentage of the total budget for each year (for example, property tax for 2008 = 52,2 ...

Question - a machine is purchased january 1 at a cost of

Question - A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life. Units produced are as follows: Year 1 10,400 Yea ...

Question - you want to borrow 67000 from your local bank to

Question - You want to borrow $67,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more. Required: Assuming monthly compounding, what is the highest rate you can a ...

Question - hudson landscaping service bought equipment for

Question - Hudson landscaping service bought equipment for 10800 on January 1 2019. It has estimated useful life of five years and zero residual value. Hudson uses the straight line method to calculate depreciation and r ...

Question - tippah antiques uses the periodic inventory

Question - Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for the year 2016: beginning balance in ...

Question - the company uses pre-numbered purchase orders

Question - The company uses pre-numbered purchase orders. Only the Purchase Manager is able to use and authorize the purchase orders. Once the purchase order has been sent to a supplier, a copy is given to the accounting ...

Question - stockman corp purchased 10 1000 6 bonds of

Question - Stockman Corp. purchased 10, $ 1,000 6% bonds of Energy Corporation when the market rate of interest was 14%. Interest is paid semiannually on the bonds, and the bonds will mature in six years. Using the PV fu ...

Question - at the end of the year but before an adjustment

Question - At the end of the year, but before an adjustment had been made to close Manufacturing Overhead Control, A-1 Frames had the following account balances: Raw Materials Inventory$126,955Work in Process Inventory$1 ...

Question - jacks jax has total fixed cost of 25000 if the

Question - Jack's Jax has total fixed cost of $25,000. If the company's contribution margin is 60%, the income tax rate is 25% and the selling price of a box of Jax is $20, how many boxes of Jax would the company need to ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved