# Practice Assessment 2 - Task 6

Zana
Posts:

**17**AAT Student
Hi,

Can someone please help me with this task?

Any help would be much appreciated! Thank you!

Can someone please help me with this task?

Any help would be much appreciated! Thank you!

## Comments

11RegisteredTo get the 35 ( selling price per seat-contribution per seat) so £70-£35

Hope this helps

17AAT Student11RegisteredSo Selling price per seat = Turnover/occupied seats (16800000/240000) = £70 per seat

Occupancy rate %= occupied seats/ available x 100 (240,000/300,000 x 100) = 80%

Variable cost per seat occupied= variable costs/ occupied seats (8400000/240000) = £35

Gross profit margin (says in question assume GP excludes fixed costs)= Variable costs/turnover (8400000/16800000 x 100) = 50%

Fixed costs per seat occupied = fixed costs/ occupied seats = (6310150/240000)= £26 remember to round up to nearest whole number

Contribution per seat = Sales price-variable costs = £70-£35=£35

Breakeven = see above answer

Breakeven turnover £ breakeven in seats x sales price = 180290 x £70= £12620300

Margin of safety = Occupied seats - breakeven/ occupied seats x 100 so 240,000- 180290/240000 x 100 = 24.88%

Mark up on total cost = profit/total cost x 100 = turnover - variable costs- fixed costs = (16800000-8400000-6310150) = 2089850

Total costs = variable costs + fixed costs = 14710150

Therefore answer is 2089850/1470150 x 100 = 14.21%

Any questions just let me know sorry if i have laid this out really confusing Goodluck for the exam whenever it is!

17AAT Student21Registered