task 6

Morning good people,can someone help me on this task especially the mark up on cost question i got no idea of how to tackle it.......
6a.PNG 13.2K

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  • Emmalouise18
    Emmalouise18 Registered Posts: 237
    Mannaesi said:

    Morning good people,can someone help me on this task especially the mark up on cost question i got no idea of how to tackle it.......

    Can you post all the figures please? Thank you
  • Mannaesi
    Mannaesi Registered Posts: 80
    @Emmalouise18 tried to attach
  • Mannaesi
    Mannaesi Registered Posts: 80
    @Emmalouise18 tried to attach
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    Mannaesi Registered Posts: 80
    @Emmalouise18 tried to attach
  • Mannaesi
    Mannaesi Registered Posts: 80
    @Emmalouise18 tried to attach its refused



    it says,.The table below shows management accounts extract for an airline company.

    Accounts extracts,
    Turnover 16800000pounds
    Variable cost 8400000pounds
    Fixed cost 6310 150 pounds
    Seats
    Occupied 240000
    Available 300000

    Assume gross profit exclude fixed costs
    show all percentages to 2 decimal places
    show other numbers to the nearest whole number

    Then you are to calculate the table i attached first.
  • Mannaesi
    Mannaesi Registered Posts: 80
    tried to attach again
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    Mannaesi Registered Posts: 80
    tried to attach again
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    Mannaesi Registered Posts: 80
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  • Emmalouise18
    Emmalouise18 Registered Posts: 237
    Mannaesi said:

    tried to attach again

    Ok so below are the workings..

    Selling price per seat is turnover / occupied seats
    Occupancy rate is occupied seats/ available seats x 100
    Variable costs per occupied seat is variable costs / occupied seat
    Gross profit margin is turnover amount/ sales ( occupied seats x selling price) x 100
    Fixed costs per occupied seat is fixed costs / occupied seats
    Contribution per seat is Turnover - variable costs - fixed costs then divide by 300
    Breakeven number of seats is total fixed costs divided by contribution (worked out in the above question)
    Breakeven in turnover use the above answer and times by selling price per seat workout above.
    Margin of safety sales - breakeven point worked out above then divide by sales again x 100
    Mark up on total cost is turnover - variable costs and fixed costs then divide answer by variable costs and fixed costs added together.

    You have put too many zero's above on the figures, I have checked this on the mock exam.

    Thank you :)
  • Mannaesi
    Mannaesi Registered Posts: 80
    @Emmalouise18 i think others i am ok,can you explain further on mark up on total cost.......like what does the question mark up on cost wants?wont there be a time they want us to caculate margin
  • Amna
    Amna Registered Posts: 24
    how to calculate gross profit margin?
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