Question PCR Dec 08 (Section 1 Task 1.2i)

Registered Posts: 15 Dedicated contributor π π΅ π
Please may you help as I thought for you to get profit ypu need to subract the fixed overheads...This is how I did it but as per the answers the fixed overheads were not included not sure why though please may you help?

Sales (477500*11) 5 252 500
Less COS
Materials 2 010 250
Labour Basic +Overtime 1 318 039

Profit 186 281

Therefore the profit per instrument is Β£186 281/477 500 sales volume = Β£0.39 per instrument

The profit percentage is (Β£186 281/ Β£5 252 500) *100 =3.54%

• Registered Posts: 144 π π π
Re Pcr

I think the reason why you are confuse is because you put Variable overhead figure 750,000, This figure was already on the overhead cost which gives a total of 987,930, therefore, Total production cost 4316219/467500 = 9.23%. Hope this help a bit
• Registered Posts: 15 Dedicated contributor π π΅ π
PCR Dec 08

thanks, i have hoever tried it again without th fixed overheards and the answer still is wrong.it would be sales-variables =5252500 - 4316219 =936 281/477 500 giving us 1,96
• Registered Posts: 7 Regular contributor β­ πΌ β­
You may have over complicated it (I do it all the time) unless I'm missing something. To get the profit per unit you only have to deduct the unit cost which was Β£9.23 in 1.2 (h) from the given sales price of Β£11.00 = Β£1.77. The percentage is Β£1.77/Β£11.00 x 100 = 16.09%

Does this help?
• Registered Posts: 157 π π π
This question twist and turn alot

Hope on monday don't have one like this I'm not sure I can do written part