logo

Management Accounting: Budgeted Net Profit, Break Even Analysis, Margin of Safety, and Sales Prioritization

   

Added on  2023-06-05

7 Pages962 Words156 Views
Management Accounting

TABLE OF CONTENTS
Question 1..................................................................................................................................3
Question 2..................................................................................................................................4
`Question 3.................................................................................................................................4
(a)...........................................................................................................................................4
(b)...........................................................................................................................................5
Question 4..................................................................................................................................5
(a)...........................................................................................................................................5
(b)...........................................................................................................................................6
References..................................................................................................................................7

QUESTION 1
Statement presenting budgeted net profit of DIHL for the
year 2018
(Amount in $)
Particular Shoe A Shoe B Shoe C Total
Sales 540000 630000 1080000 2250000
Variable Cost 360000 405000 660000 1425000
Variable Selling cost 112500 90000 210000 412500
Contribution margin 67500 135000 210000 412500
Fixed manufacturing cost (Note
1) 56850 56850 75800 189500
Fixed selling and administrative
cost (Note 2) 24000 24000 32000 80000
Net Profit before tax -13350.00 54150.00 102200 143000
Tax @ 30% 16245 30660 42900
Profit After Tax -13350.00 37905.00 71540.00 100100
-10000
10000
30000
50000
70000
90000
110000
-13350
37905
71540
100100
Profit After Tax
Shoe A Shoe B Shoe C Total
Note 1
Fixed Manufacturing cost
Particular Shoe A Shoe B Shoe C
No of shoe 4500 4500 6000
Fixed manufacturing cost
4500/15000*189
500
4500/15000*189
500
6000/15000*189
500
56850 56850 75800

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Cost-Volume-Profit Analysis of Daphne International Holdings Limited (DIHL)
|7
|2622
|110

BBAC 501 : Management Accounting
|9
|866
|63

Accounting Financial Analysis Report
|9
|1234
|404

Company's monthly cash budget Assignment
|8
|1641
|34

Accounting Financial Analysis Report
|9
|1247
|27

Accounting for Business: Break Even Analysis, Payback Period and NPV
|10
|1313
|453