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Practice Assessment 2 - Task 8 b.

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It's just the part that asks for the required sales volume in units that I need a prompt with?

Answers

  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    We need to see the fixed costs in (a)
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  • gabriellenlewisgabriellenlewis AAT Student Posts: 129
    > @dumutroba said:
    > We need to see the fixed costs in (a)

    Ok, I can’t access them right now but what do we do with them once we have figure? Thanks.
  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    edited July 2018
    For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
    From a you can possible fill most of the gaps and come to the answer
    AAT Level 2. 2018 Distinction
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    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
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  • gabriellenlewisgabriellenlewis AAT Student Posts: 129
    > @dumutroba said:
    > For the break even formula we need fixed costs to be divided to contribution(selling price less variable costs)
    > From a you can possible fill most of the gaps and come to the answer

    Why do we need break even though if there’s a desired profit margin of 25%?
  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    edited July 2018
    Profit margin is your gross profit, this is the formula sales less cost of sales (variable and fixed production costs) in this case 25%margin 75% cost of sales 100% sales
    I can't still come to an answer as I can't see all figures
    I will try when I get back home
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • dnataliadnatalia Registered Posts: 2
    edited September 2018
    Hi there. for this task would you be able to provide reply (b) require sales volume in units. t
    The given answer is 25,217 but i cannot get to that number. thanks


    DONT WORRY, FOUND THE ANSWER IN ANOTHER POST. THANKS
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