financial performance task 1.8 paper 2

Hi Guys!
Does anyone know any ideas on task 1.8 on the paper 2 please?

thanks

sara

Comments

  • rosiefaithrosiefaith Posts: 17Registered
    Hi Sara,

    a) £120,000
    Workings: £90 selling price minus the cost of £70 = profit per unit = £20 x 6000 units = £120,000

    b)£70 x 8000= £560,000 sales
    The variable costs are - £30 x 8000 = £240000
    Fixed costs are then flexed. £24 x 10,000/8000 =£30
    £30 x 8000 = £240,000

    Sales of £560k minus all costs of £480k = £80k

    c)£70 x 10,000=£700k
    The variable costs are - £30 x 6000 = £180,000
    Fixed costs are then flexed. £24 x 10,000/6000 = £40
    £40 x 6000 = £240,000

    The extra 4000 then cost £45 x 4000 = £180,000

    Sales of £700k minus all costs of £600k = £100k Profit

    d)£50 / 80% = £62.50
    As the 20% is profit margin.

    e)£80 x 30% = £24
    £80 + £24 = £104

    Hope this helped.
    KellyM
  • sharkersharker Posts: 1Registered
    Thanks Rosiefaith,

    I was looking for this answer.
    Well explained - cheers x
  • hkaur92hkaur92 Posts: 28Registered
    Thanks for this @rosiefaith! The workings for the answer really helped x
Sign In or Register to comment.