Decision and Control Assessment 1 task 6 D

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 !!

Comments

  • CuddenCudden Posts: 7Registered
    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!
  • RioRio Posts: 7Registered
    Thank you so much !! xx
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