Managerial Accounting

Dr. Mostafa K. Hassan

1 &2 Sales volume List price Sales value Less: Cost of sales 0.50 x sales volume Less Less: Discount per unit Total discount Product handling Gross Margin Less: cost of Activities Purchase order Sales visit No of delivers P Q R 50,000 210,000 146,000 X 0.60 X 0.60 X 0.60 30,000 126,000 87,600 (25,000) (105,000) (73,000) 5,000 None None 5,000 1,000 4,000 1,500 160 10x14x2 = 280 000 2,060 21,000 0.01 /u (2,100) 18,900 4,200 14,700 2,500 320 30x4x2 = 240 000 11,640 14,600 0.05 /u (7,300) 7,300 2,920 4,380 3,000 480 60x3x2 =360 000 540 T 94,000 X 0.60 56,400 (47,000) 9,400 0.06/u (5,640) 3,760 1,880 1,880 3,000 240 20x40x2= 1,600 300 (3,260)

Hot runs Operating profit (loss)

4 The required demand is 50,000 x 2 = 100,000 In order to produce the required demand, Daton has to have two batches of production. P Sales volume 100,000 List price X 0.60 60,000 Sales value Less: Cost of sales 0.50 x sales volume (50,000) Less 10,000 Less: Discount per unit None Total discount None Product handling 100,000 x 0.2 =2,000 Gross margin 8,000 Less: cost of Activities Purchase order 2 x 1500 =3,000 Sales visit 2 x 160 = 320 No of delivers 10x14x2 = 280 x 2 = 560 Hot runs Operating profit (loss) 000 4,120

EMBA (Class)

1

Dr. Mostafa K. Hassan

5 - number of batches required = 90000/40000 = 2.25 batches (i.e 3 batches). Q Sales volume 90,000 List price X 0.60 54,000 Sales value Less: Cost of sales 0.50 x sales volume (45,000) Less Less: Discount per unit Total discount Product handling Gross margin Less: cost of Activities Purchase order Sales visit No of delivers 9,000 0.00 /u (0000) 90,000 x 0.02 = 1,800 7,200

3 x 2,500 = 7,500 3 x 320 = 960 30x4x2 = 240 x 3 = 720 000 (1,980)

Hot runs Operating profit (loss)

EMBA (Class)

2