Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 26 Sep 2017 My Price 8.00

x-Company

x-Company manufactures two types of TV sets -LCD and CRT both having only one model. The LCD and CRT television sets sell for br9000 and br5000 respectively. the company sells its products through its own stores and other outb lets . Total fixed expences are 15000000 per month . Variable expences and monthly sales are giveb below.
variable expeneses for LCD br5000 and for CRT br 2000
monthly sales fir LCD 2000 and for CRT 3000
Required
a/Determine the breakeven total volume of sales and sales volume for each product
b/ Determine sales volume and sales revenue for the company to earn br 500000 profit after 30%profit tax
c/the company has planned to incur br200000 monthly selling expenses to increase sales volume for its LCD and CRT sets to 4000 . If the plan materializes and other things remain constant ,determine breakeven sales volume and sales revenue for the companyIf the plan materializes and other things remain constant ,determine breakeven sales volume and sales revenue for the company.
e/If the company is guaranteed with total sales volume of 10000 TV sets in a given month , should it go for option "c or d"above given that sales mix remained constant as provided in each of two options ?Why? What if the guaranteed total sales volume of 7000instead of 10000? Why? What should be the guaranteed total sales volume for the two options to provide equal profit to the company?
d/ The company has planned to buy new and improved technology that reduces variable and production expenses for its LCD tv set to 4000 while increasing its monthly fixed costs by 500000

Answers

Maurice Tutor
(5)
Status NEW Posted 26 Sep 2017 11:09 PM My Price 8.00

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