Costs & Revenues  Budgeted Contribution
SammyRPA
Registered Posts: 26 Dedicated contributor 🦉
Me again with another blank moment :blushing:
Can anyone help me with task 2.2 on the 2nd pracrtise CBA from AAT website please?
Again my notes on this area are just not making sense or sinking in feel like such a numpty :glare:
Just a general run through of the process would be much appreciated :thumbup1:
Many thanks
Sammy
Can anyone help me with task 2.2 on the 2nd pracrtise CBA from AAT website please?
Again my notes on this area are just not making sense or sinking in feel like such a numpty :glare:
Just a general run through of the process would be much appreciated :thumbup1:
Many thanks
Sammy
0
Comments

Me again with another blank moment :blushing:
Can anyone help me with task 2.2 on the 2nd pracrtise CBA from AAT website please?
Again my notes on this area are just not making sense or sinking in feel like such a numpty :glare:
Just a general run through of the process would be much appreciated :thumbup1:
Many thanks
Sammy
Hi Sammy
This question looks complicated but is actually very easy. The key is to remember you have plenty of time and keep calm. Read the whole thing through a couple of times first so that you know exactly what they are asking for.
The first table gives all the info we need. The budgeted Units expected to be sold and expected sales revenue for each column is sufficient to calculate the budgeted sales price per unit. For column 1 we have £75000 divided by 50000 units. Calculate the value per unit. Then do the same thing with each cost: £20,000, £30,000, £5000 again dividing by the units sold. Once you have the sales price per unit, then deduct all the direct costs per unit (which are variable) and all other variable costs per unit. The net figure after the deductions will be the budgeted contribution per unit. You then multiply the contribution per unit by the number of units budgeted to be sold to get the total contribution figure.
Do the same thing for both columns. Finally add the fixed costs figure in the final column to calculate the overall profit or loss figure.0 
Thank you sooooo much you have saved me from thinking I was going insane haa!!
I will go over it tomorrow or Monday and let you know if it all clicked into place!
Thank you again :001_smile:0 
I should have said "enter" not "add" the fixed costs figure. Obviously you will need to DEDUCT the fixed costs figure from the total contribution0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 319 NEW! Qualifications 2022
 157 General Qualifications 2022 discussion
 11 AAT Level 2 Certificate in Accounting
 56 AAT Level 3 Diploma in Accounting
 92 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 92 Software
 274 Tax
 136 Bookkeeping
 7.2K General accounting discussion
 201 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 582 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership