Help required volume of sales to achive X profit
topcat
Registered Posts: 452
Question D
My attempt was working out the profit per unit which would be £70-£49 = £21
£800, 000 / £21 = 38,096 units
although the answer is 35,152 units which would work out at at profit of £22.76 per unit ? What have i overlooked please?
My attempt was working out the profit per unit which would be £70-£49 = £21
£800, 000 / £21 = 38,096 units
although the answer is 35,152 units which would work out at at profit of £22.76 per unit ? What have i overlooked please?
0
Comments
-
Found from one of Sandys (thanks) old threads through google as the search here is useless. Do we need to know this formula for 2013 syllabus?
"
This is a development of break even analysis.
You should know that:
required profit + total fixed costs = sales volume required for required profit
.......contribution per unit
So use the figures you have produced
£800,000 + £360,000 = 35151.5 which rounds to 35152
...........(£70-£37) "
ref http://forums.aat.org.uk/forum/for-s...target-costing0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 323 NEW! Qualifications 2022
- 165 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 88 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic 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