NOR SALIHAH ZULKIFLEE ASSIGNMENT CHAPTER 6 (2) 6.3) 1) CM RATIO = CM ÷ SALES = $80 000 ÷ $200 000 = 40% 2) SALES VE CM FE
$201 000 120 000 81 000 65 000 $16 000
6.4) 1) the advertising budget should be increased 2) the higher-quality components should be used 6.14) 1) CM RATIO = UNIT CM ÷ UNIT SALES 30% = CM ÷ $40 UNIT CM = $40 × 30% = $12 UNIT SP - UNIT CM = VE/UNIT $40 - $12 = $28 2) a) SALES = VE + FE + PROFIT $40Q = $28Q + $180 000 $12Q = $180 000 Q = $180 000 ÷ $12 = 15 000 UNITS SALES = VE + FE + PROFIT X = 0.7X + $180 000 0.3X= $180 000 X = $600 000
b) SALES = VE + FE + PROFIT $40Q = $28Q + $180 000 + $60 000 $ 12Q = $240 000 Q=20 000 X =0.7X + $180 000 + $60 000 0.3X = $240 000 X = $800 000 c) SALES = VE + FE + PROFIT $40Q = $4Q + $180 000 + $36Q = $180 000 Q = 5000 UNITS X = 0.1X + $180 000 + 0.9X = $180 000 X = $200 000 3) a) SALES – VE = CM $140 - $28 = $12/UNIT BEP UNIT SOLD = FIXED EXPENSES ÷ UNIT CM = $180 000÷$12/UNIT = 15000 UNIT BEP TOTAL SALES DOLLAR = FE ÷ CM RATIO = $180 000 ÷ 30% = $600 000 b)UNIT SALES = (FE + PROFIT )÷ UNIT CM = ($180 000 + $60 000) ÷ $12 =20 000 UNITS DOLLAR SALES = (FE + PROFIT) ÷ CM RATIO =($180 000 + $60 000) ÷ 30% =$800 000 c) UNIT SALES = (FE + PROFIT) ÷ UNIT CM =($180 000 + $60 000) ÷$36 =6667 UNITS DOLLAR SALES = (FE + PROFIT) ÷ UNIT CM = $180 000 + $ 60 000 ÷ 30% =$800 000