Optimizing Profit and Financial Statements

The assignment content consists of two parts: (1) a company called LykkeTil AS, which produces only one type of product and has a relationship between price and volume in the domestic market; and (2) a company called M & M's Lemonades AS, which is a lemonade business that started on November 1st, 2016. The assignment requires calculating the maximum achievable margin and result for LykkeTil AS, and also calculating the profit and balance of M & M's Lemonades AS for the period from November 1st, 2016 to December 31st, 2016.

Question 3.
LykkeTil AS produces only one type of product and believes that the relationship between
price and volume in the domestic market for this product is:
P = 3 600 to 1.2 X (where P is the unit price and X - number of requested devices period).
An analysis of costs gave the following relationship between total costs and amount in the
relevant interval:
TK(total costs) = 600 X + 900 000 (where X is the number of units).
Maximum production capacity is 2,500 units in the period.
a) gain optimum quantity and price. Calculate the maximum achievable margin and maximum
achievable result.
b) the quantity and price are demand neutral elastic? Also calculate the maximum turnover
(TI).
c) As an alternative to selling at above market can now sell everything it produces abroad
(export) at a fixed price £ 1500, - per unit. What will gain optimal amount by selling in this
market, and what is the maximum achievable result?
Question 4.
Mikkel and Maria have 01.11.20X6( november 1`st 2016) started ”M & M`s Lemonades AS”
with the following assets (in NOK 1000)
Assets Valu
e
Van 150
Raw material storage 50
Property 970
1000 shares of XYZ AS (course(rate)
50/share) 50
PC, Printer, Telephones 30
Bank deposits 95
Cash 5
Machine for production of lemonade 500
Total assets 1

850
The assets are financed with 60% equity and 40% debt (loan from a local bank)
a) Enter the opening balance (IB in Norwegian) for ”M & M`s Lemonades AS” per
01.11.20X6 (1`sto f november 2016)
b) Specify how the following events / vouchers will be posted on the accounts in the
financial statement of ”M & M`s Lemonades AS” (the firm is within the toll area and
is registered for VAT) Registrations must be done without "draw up" accounts, ie to
include date, voucher number, account number and account name, and the amount to
be recorded debit (+) or credit (-) in accounts. Start with vouchers 100.
Take accounts from a standard account plan.
 2.11: Inserts ad in the local newspaper, 2 500 nok(norwegian kroner) inclusive
of 25% VAT. The local newspaper issues a bill with a maturity date of
15.11.2016.
 5.11: Sells 200 shares of XYZ for nok 60/share
 14.11: Cash recceipt: Various, stationery nok 12 500 inc VAT
 15.11: Paying ad in the local newspaper on maturity
 24.11: Fills gasolin eon the car for nok 800, cash
 30.11: Sales Journal: Cash sales of goods in November nok 100 000 inclusive
of 25% VAT
 1.12: Bank Account charged with nok 6 167 in interest payments on the loan
(no installments)
 7.12: Invoice from Lemon AS:
 Appliances (for resale) NOK 50 000
25% VAT NOK 12 500
Total NOK 62 500
15 days credit, 2%
 10.12: Credit note from Lemon AS
Lack of delivery per 7.12 NOK 3 000
25% VAT NOK 750
Total NOK 3 750

 27.12: Bank Recceipt: Payment to Lemon AS per 27.12, see transaction of
7.12 and the ref. Credit note of 10.12.
 29.12: Builds small extensions on the property for added storage capacity and
recceive the following documents:
Snekker AS
Tregata 3
6660 Skogsby
OrgNo NO 123 456 789 012 VAT
Bank account 132425768
Invoice 08/15/16 Skogsby, 29.12 20X6
M & M's Lemonades AS
Drikkegata 1
6010 Ålesund
 Extension materials NOK 100 000
 Hour consuption NOK 50 000
 VAT 25% NOK 37 500
Total NOK 187 500
Deadline: January 10, 20X7, 3%
 30.12: Bank Recceipt: Payment to carpenter AS, see transaction of 29.12
 31.12: The price of XYZ company shares have fallen to US $ 45 per share, and M &
M`s Lemonades AS takes into account the change in value in the financial statements
 31.12: Bank account charged with NOK 6 167 in interest payments on the loan, and
NOK 148 000 in installments (repayment of loan)
 31.12: Results, inventory- commodity warehouse empty
 31.12: Sales journal: Cash sales of goods in December, NOK 110 000 inclusive 25%
of VAT
c) What Is "M & M'Lemonade`s AS" its profit for the period 01.11.20X6-31.12.20X6?
d) What is "M & M's Lemonades AS" their balance per 31.12.20X6?