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  3. q2 a) chiyeyeye full cost statements appears as

Q2 a) Chiyeyeye full cost statements appears as follows: Indirect expenses ...

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Accounting

Q2
a) Chiyeyeye full cost statements appears as follows:
Indirect expenses
Chiseche budgets to make and sell 100 pieces of furniture's during the financial year. If the selling
price per furniture is ZMW600 and variable cost per unit would be ZMW400.
Looking ahead to the financial year ending 31+-march 2018, the directors of chiyeyeye linited
are faced with a budgeted loss of ZMW10,000
Budgeted units 100
Selling price per uit , MMW600
Variables costs per umit ,MMW400
Fixed cost , ZMW 21000
The directors would like to aim for a profit of ZMW20000. Various proposals have been put
forward, none of which require a change in the budgeted levels of fixed costs:
a) Rechuce the selling price per umit by 10 percent
b) Increase the selling price of each umit by 10 percent
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