just checking my workings unit 6 sim

hi all

if someone can confirm i am on the right track

sales volume 440 batches

sales revenue 110,000
direct materials 74,800
direct labour 22,000
fixed overhead 12,000
total forecast cost 108,800

forecast profit 1,200

breakeven point 400 batches
selling price = 250 less vc 220 = 30
fc less contribution = 400

margin of safety 9%
440-400=40
40/440 = 0.09 * 100

number of batches to make a profit of 2,550 = 485
fc 12,000 + forecasted profit 2,550 = 14,550
14,550 / contribution 30 = 485 batches

if someone can just give me a yes or no and i will feel happier.

thanks

Tracy

Comments

  • cindy_ng
    cindy_ng Registered Posts: 8 Regular contributor ⭐ ? ⭐
    i got the answers of this practice simulation, i can send it to u if u want?! =)
  • taskey
    taskey Registered Posts: 1,800
    cindy_ng wrote: »
    i got the answers of this practice simulation, i can send it to u if u want?! =)

    no, thanks anyway. this is my mock one which i have to send off for marking.

    Tracy

    but does it look right anyway lol
  • cindy_ng
    cindy_ng Registered Posts: 8 Regular contributor ⭐ ? ⭐
    yeh, u are totally right!!! (although the suggested answer of the MOS is 9.1%, im sure u are right on the spot!) =)
  • taskey
    taskey Registered Posts: 1,800
    brilliant, thanks, i can write it in pen now
  • cindy_ng
    cindy_ng Registered Posts: 8 Regular contributor ⭐ ? ⭐
    u are more than welcome.

    best of luck =)
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