NO PHOTO OR HANDWRITING CLEAR SCHEDULE YOU CAN PUT ANY FIGURE ITS ASSUMPTIONS Akbar Company is producing...

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Accounting

NO PHOTO OR HANDWRITING CLEAR SCHEDULE

YOU CAN PUT ANY FIGURE ITS ASSUMPTIONS

  1. Akbar Company is producing two types of products i.e.Product A and Product B. You are required to show quantitativeanalysis of one constrained resource i.e. total available machinehours. The following is a contribution income format of thecompany.                                                                                                 

(use your own figures in thefollowing table)

Product A

Product B

Selling Price PerUnit

Variable Cost PerUnit

Contribution Margin Perunit

Contribution MarginRatio

Required MachineHour/Unit

           Assume a figure for total available machine hours as a constrainedresource.

           Determine the following:

  1. What is the total contribution margin if only Product Ais produced?
  2. What is the total contribution margin if only Product Bis produced?

Solution: The answers of allthe students will differ.

  1. Prepare a cash flow statement from the followinginformation under indirect method.

(Assume your ownfigure)                                                                             

Amount ($)

Net Income

Cash and Cash Equivalent inthe beginning

Amortization of IntangibleAssets

Depreciation

Gain on sale offurniture

Purchase ofMachinery

Borrowed fromBank

Issued PreferenceShares

Increase inReceivable

Decrease in OutstandingExpenses

DepreciationExpense

Sale of Furniture

Solution: There will bedifferent answers for all students.

3-You are required to allotthe support department cost to operations department by taking anySaudi based operating company.

Solution: There will bedifferent answers for all students.

Answer & Explanation Solved by verified expert
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