Show full workings cause the marks will be allocated to workings.Document Preview:11-11 Using Profit and Loss Statement information to perform CVP analysisLast years profit and loss statement for ABC Ltd was presented as follows:Sales (20 000 @ $20)$400 000Cost of Sales:Direct Materials$120 000Direct Labour 80 000200 000200 000Other Expenses:Fixed40 000Variable100 000140 000Net Profit$60 000This year sales volume is expected to decrease by 5%, and total material and labour costs are expected to increase by 10%. Other variable expenses fluctuate directly with dollar sales. Fixed expenses are expected to drop by$3500.Required:(a) Ignoring income taxes, what is this years expected net profit?(b) What sales price per unit will be necessary this year if management wishes to maintain the same profit to sales ratio as last year?11-14 Multi-product CVP: 2 productsA company makes two products, X and Y. At present the sales mix is 1 unit of X to 3 units of Y. Fixed costs per period are $20 000. Selling prices and variable costs per unit for each product are:XYUnit selling price$18$15Unit variable cost$10$11Required:(a) How many units of each product must be sold in a period to make a profit of $15 000?(b) If in a period the sales mix changed to 2 units of X to 2 units of Y, and the total number of units sold in the period were 8000, how much profitwould be earned in the period?(c) Assume that there is no specific sales mix. Write the breakeven equation and graph it. Name two breakeven points, and calculate a third breakeven point which is a linear combination of the two, using g = 0.25. Prove that your third point is indeed a breakeven solution.11-20 CVP under uncertainty: discrete probability distribution for sales Management is considering producing one of two proposed new products, Product A or Product B. Both products have the same unit contribution margin of $4 and the same incremental fixed costs of $400 000 per annum. Sales volumes, however, are uncertain, but the following probability distributions of sales have been Attachments: 11.docx
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