financial performance task 1.8 paper 2
jazzies123
Registered Posts: 8
Hi Guys!
Does anyone know any ideas on task 1.8 on the paper 2 please?
thanks
sara
Does anyone know any ideas on task 1.8 on the paper 2 please?
thanks
sara
0
Comments

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.1 
Thanks Rosiefaith,
I was looking for this answer.
Well explained  cheers x0 
Thanks for this @rosiefaith! The workings for the answer really helped x0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.5K For AAT students
 318 NEW! Qualifications 2022
 156 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