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Assignment on Accounting and Finance (Solution)

   

Added on  2021-02-21

18 Pages3874 Words28 Views
Accounting and Finance

INTRODUCTION ..........................................................................................................................3PART A...........................................................................................................................................4PART B............................................................................................................................................4A. Calculation of contribution per unit........................................................................................4B. Evaluation of breakeven analysis and the margin of safety....................................................5C. calculation of profits if the company produces and sells more number of units at sameselling price per unit.....................................................................................................................5D Computation of the net profits after increasing the sales units and per unit price...................6E Identifying and explaining the assumptions of the breakeven analysis model and itsusefulness.....................................................................................................................................6PART C............................................................................................................................................8b. Analyzing the benefits and the limitations of the different capital or investment appraisaltechnique....................................................................................................................................10c. Explaining and evaluating the advantages and disadvantages of various planning tools......12CONCLUSION..............................................................................................................................15REFERENCES..............................................................................................................................16

INTRODUCTION The amount of money and the credit invested in the business. It includes the procurement,allocation and utilization of the funds for smooth functioning of the operations of theorganization is called as accounting and finance. Basically, this report is entirely based ondifferent aspects of the accounting concepts and the business finance. The study provides thedeep insights on the breakeven analysis and various investment appraisal techniques with theirpros and cons. Furthermore it describes the benefits and the limitations of different budgets.Several practical implications are also included in the study. PART ADexter Plc Income statement for the year ended 31st December 2018

ParticularsAmountNet figuressales revenue 504000+129000633000less: cost of sales243000+54000297000gross profit633000-297000336000less: operating expense-rent112500depreciation on motor van57600wages117000electricity bill5700van running expenses33600bad debts1500327900Operating profit before taxless: tax4500-2400*3/12525Net profitPART BA. Particulars Figures(in £)Fixed cost Production59,000Selling etc.47600Total fixed cost 106,600Variable cost per unit Materials5.25Labor2.95Variable overheads1.85Total variable cost per unit 10.05Particulars Figures(in £)Selling price per unit 13Less: Total variable cost per unit 10.05Contribution (per unit)2.95

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