QUESTION 2Mulenga Chisha (MC) produces crocodile sausages and the budgeted profit per unit is asfollows:KMaterials1.00Labour1.50Variable Production overhead1.50Fixed Production overhead2.00Variable Selling Cost0.50Fixed Selling Cost1.00ProfitSelling price2.5010.00MC has budgeted 9,500 units of crocodile sausage in a year. In the first year ofproduction, the only difference from the budget was that MC produced 10,500 units ofcrocodile sausages and sold 8,500 units.Required:Preparea) Profit statement under absorption costing.b) Profit statement under marginal costing.

Step 1: Calculate the Total Revenue:- Multiply the selling price per unit by the number of units…

Answered: QUESTION 2 Mulenga Chisha (MC) produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION 1 B Limited produces and sells the following three products: Product X Y Z Selling price per unit (N$) 16 20 10 Variable cost per unit(N$) 5 15 7 Contribution per unit(N$) 11 5 3 Budgeted Sales Volume (units) 50,000 10,000 100,000 The company expects the fixed costs to be N$300000, for the coming year. Assume that sales arise throughout the year in a constant mix. Required: (a)Calculate the weighted average contribution sales ratio (C/S ratio) of the products? (b)Calculate the break-even sales revenue required AND Calculate the margin of safety. (c)Calculate the amount of sales revenue required to generate a profit of N$600000. (d)Draw a multiproduct profit volume chart assuming the budget is achieved.
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