Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. section a answer both questions in this section qu

SECTION A Answer both questions in this Section Question one XYZ Ltd makes one product...

60.1K

Verified Solution

Question

Accounting

image

SECTION A Answer both questions in this Section Question one XYZ Ltd makes one product which it sells for K600 per unit, The analysis of its costs has revealed the following: The company is about to start budgeting for the forthcoming period and wishes to establish the level at which it should operate in order to ensure that enough profits are earned for its shareholders to receive an attractive dividend. In this regard it wants to know the breakeven point, the level at which it should operate to earn profits of K100 million and above and the margin of safety of 40%. Required (a) Calculate the breakeven point in units and in Kwacha. (b) How many units must be produced to earn a profit of (i) K100 million? (ii) K250 million? (c) How many units of production ensure a margin of safety of 40% ? (d) What will happen to profit if the company decides to operate at 1,500,000 units and fixed costs rise by 20% ? (25 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

What is the benefits of using cfd?

Mechanical Engineering
1.2K views

Uniform internal heat generation at  q˙⁢ = 2.00 × 107 W/m3 is occurring in a cylindrical nuclear...

Biology
1.2K views

In which structure does fertilization take place oviduct cervix ovary uterus

Geometry
1.2K views

24 20 16 12 8 4 Ol 2 4 6 8 10 12 14 16...

Statistics
1.2K views

X P x 0 0 2003 1 0 1503 0 0003 0 6491 2 3...

Calculus
1.2K views

Using the graph below, determine the following:(a) lim f(x)(c) lim f(x)(b) lim f(x)(e) lim (x)(d)...

Algebra
1.2K views

Find the general solution of 3 y y 2y Sinx cos2x y p 50 st

Accounting
1.2K views

P3-2 The following information was obtained from the accounts of Lukes, Inc., as of December...

Accounting
1.2K views

KFH entered into a 4 year mudarabah muqayyadah contract with a mudarib with a profit...

Accounting
1.2K views

Hi I need help with these becker simulations! ...

Accounting
1.2K views

Required information Use the following information for the Exercises below. (Algo) [The following information applies...

Finance
1.2K views

Check my work Newlyweds Jamie Lee and Ross have had several milestones in the past...