Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio i) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000

Amazon limited sells a product whose data for two quarters is as follows: Quarter One Two Sales revenue (Ksh) Variable costs (Ksh) Profit (Ksh) 100,000 60,000 20,000 150,000 90,000 40,000 Unit price, unit variable cost and fixed costs remained constant during the two quarters. Required: i) Determine the fixed costs and the contribution margin ratio i) Determine the breakeven sales revenue iii) Compute the profit if goods worth Ksh 500,000 were sold iv) Determine the sales revenue for a target profit of Ksh 120,000

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 23E: Variable cost method of product pricing Based on the data presented in Exercise 17, assume that...

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