Decision and Control Assessment 1 task 6 D

Rio

Hi

Could someone please help me with the below. I tried to work out using the period days and receivables amount but cannot do it


Thank you !!

Cudden

Goes something like this:-
(d)
Sales
£120,000/30days x 365days = £1,460,000 (100%)
Gross Profit
25% of £1,460,000 = £365,000 (25%)
Cost of Sales
£1,460,000 - £365,000 = £1,095,000 (or 75% of £1,460,000)
Fixed Production
40% of £1,095,000 = £438,000
Variable Production
£1,095,000 - £438,000 = £657,000
Operating Profit
15% of £1,460,000 = £219,000
Non Production
£365,000 - £219,000 = £146,000
(e)
£117,000/£1,095,000 x 365days = 39 days (rounded)
Hope this is of some use all the best!

Rio

Thank you so much !! xx