Page 276 - P1 Integrated Workbook STUDENT 2018
P. 276
Subject P1: Management Accounting
2.4 A company produces a product with the following budgeted information:
$
Sales 140,000
Variable costs (60,000)
Fixed costs (100,000)
–––––––
Budgeted profit/(loss) (20,000)
–––––––
The margin of safety for the product is _________________ %
(Your answer should be rounded down to the nearest whole percentage)
2.5 Which of the following is not normally represented on a multi-product
profit-volume chart?
A A contribution line for each product
B Multiple break even points
C Profit (or loss) earned
D Variable costs
2.6 A company provides two services as follows:
Service Training Evaluation
Volume 4,000 1,000
Selling price $400 $200
Variable costs per service $160 $40
The fixed costs attached to the services are $500,000.
To the nearest $000, what is the break even sales revenue for the
company?
A $500,000
B $804,000
C $833,000
D $1,600,000
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