# Task 6 decision and control

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The folllowing information is relevate in parts a ,b and c.

a)Herta is a division of a large company.Herta has a trade receivable collection period of 52days,average trade receivable of 301 600 pounds.Price are set using a mark up cost of 25%.Selling cost are 5% of sales and administration cost are 3.2% of sales.Net asset are 1452500 pounds.There are 365 days in a year.

Calculate,

sales
cost of sales
Gross profit
selling costs
net profit

b)using part of a)calcuate the following.show your answer to one decimal places.

i)gross profit margin
ii)the net profit margin
iii)the return on net asset

c)the manager of the Herta division receive a bonus if the division achieves the company,s return on net asset of 14%.The bonus is calculated as 5% of the additional profit that the division makes in excess of the target profit.

i)Target profit (in pounds)
ii)manager,s bonus(in pounds)

• Registered Posts: 80
@Emmalouise18 hellows, i kindly need your assistance
• Registered Posts: 80
@Linz86 @Mewmoon @Bran278 hellow hellow,good people i am sorry to be calling you guys to my post but i really need your help guys task 6 of this exam is giving me hard time and if not mistaken you guys nailed the horrible exam can you please help a sister here,,,,,,,,,,,,,"bonus and performance indicators question"please have a look
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do you still need help?
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Can someone confirm the below answer is correct for the above question? I tried but not sure whether it's right.

a)
Sales - £2,117,000
Cost of Sales - £1,587,750
Gross Profit - £529,250
Selling Cost - £105,850
Net Profit - £355,656
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b) Gross Profit Margin - 25%
Net Profit Margin - 16.8%
Return on Net Assets - 24.5%
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c) no idea
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edited September 2022
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