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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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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
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@Emmalouise18 tried to attach
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@Emmalouise18 tried to attach
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@Emmalouise18 tried to attach
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@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.
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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
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@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
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how to calculate gross profit margin?