Introductory Finance and Accounting TCA Answer Book –ACC10032122 1st Examination Module Number

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TCA Answer Book –ACC10032122 1st
Examination Module Number Total number of answer
books submitted
Module Title (as on Examination Paper) Total number of
questions attempted
Student Number Date:
/ /
For Examiner’s Use Only
Question Marks
Examiner Assessor
Instructions to Students
1. Enter the details required on this cover. Do not write in the
shaded section.
2. All calculations and rough work must be done in this book.
Cross through any rough work you do not wish the examiner
to mark.
3. In the first column to the right, circle the question
number attempted in the book.
4. If additional books are used, write your student number and
examination paper number on each book and secure together
with the treasury tag provided.
5. Please indicate number of answer books used and number of
questions attempted in this examination in the appropriate
boxes above.
6. Students must not destroy or remove from the examination
venue any books or additional sheets. For all purposes they
remain the property of The University of Northampton.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Total
%
Examiner’s signature

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1a
a.
Total costs
Variable costs
Fixed Costs
Sales
Minus Variable Costs
Contribution
Minus Fixed Costs
Profit
£
Boots
£ Heel
Shoes
£
Party
Shoes
£
Sandals
£
Total
1b
b. Dropping sales of Party
Shoes
£
Contribution from Boots 100000
Contribution from Heel Shoes 145000
Contribution from Sandals 185000
Total contribution 430000
Minus Fixed Costs 40000
Profit 390000
60000 35000 45000 50000 190000
50000 25000 35000 40000 150000
10000 10000 10000 10000 40000
150000 170000 20000 225000 565000
50000 25000 35000 40000 150000
100000 145000 (15000) 185000 415000
40000
375000

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1c
The production of party shoes wills leads to loss for the Jacky Shoes Design. The sales company is
making against production of Party shoes is only 20000 whereas the total cost of production of respective
shoes is amounted to 35000 this means that the organization will only consider the loss as the total cost of
production is more than the sales revenue the respective product is offering to the organization. Contribution
in negative will further lead to generating net loss against making a sale of the respective product line. In
case the organization do not carry out production of the party shoes than the respect of the products are only
making and adding profits into party funds. The basic nature of the business is to offer such products that
consider profits or possibility to gain profits out of the sale is made (Siti-Nabiha, Nordin and Poh, 2021).
The Jacky Shoes Design is not being able to make profits out of the sale which demonstrate the fact that the
business unit is only capable to entertain the loss against selling the respective product line. In case the
company make a sale of party shoes than the total estimated profit of the sale is worth as 375000 on the
other hand if the company do not offer the sale of party shoes than the estimated profits for the sale is
identify as 390000 which is more in comparison to selling the party shoes. This clearly indicate the fact that
the Jacky Shoes Design contain better profits if it do not make a sale of the party shoes. The aim of the
business is to generate profits and making sale of all such products that can consider profits is the best way
of executing business operations. Company can only consider the sale of such products that are into heavy
demand. The losses incurred against selling of party shoes are clearly stating the fact that the business is not
being able to contribute in profits against making a sale of the party shoes. This is precisely stated as a fact
that the business is only being able to make better profitability if the organization stop selling the party
shoes.