ALL PAPERS

“[ANSWER] Question 3 Basu Plc. produces and sells a specialised computer software programs. Estimated unit data for next year are as follows: £ Selling price 600 Variable costs: Labour 200 Materials 40 Selling 10 250 Anticipated fixed costs for the year are £60,000 for administration and £80,000 for selling and distribution. Estimated sales for the year are 640 computer software’s. Required: a) Determine the following for Basu Plc. i) Breakeven point in terms of number of programs sold. (3 marks) ii) The margin of safety as a percentage of estimated sales. (3 marks) b) The company’s target profit for the year is £56000, Will the estimated sales volume be sufficient to achieve this. By how much will profit from the estimated sales volume exceed or fall short of the target profit. (5 Marks) c) Prepare a breakeven chart for Basu Ltd. showing clearly the breakeven point and margin of safety. (7 Marks)” has been added to your cart. View cart