Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


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

Comments

  • Emmalouise18Emmalouise18 Registered Posts: 150
    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
  • MannaesiMannaesi Registered Posts: 55
    @Emmalouise18 tried to attach
  • MannaesiMannaesi Registered Posts: 55
    @Emmalouise18 tried to attach
  • MannaesiMannaesi Registered Posts: 55
    @Emmalouise18 tried to attach
  • MannaesiMannaesi Registered Posts: 55
    @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.
  • MannaesiMannaesi Registered Posts: 55
    tried to attach again
  • MannaesiMannaesi Registered Posts: 55
    tried to attach again
  • MannaesiMannaesi Registered Posts: 55
    tried to attach again
  • Emmalouise18Emmalouise18 Registered Posts: 150
    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 :)
  • MannaesiMannaesi Registered Posts: 55
    @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
Sign In or Register to comment.