Task 6 decision and control

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.


cost of sales
Gross profit
selling costs
admin 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.

using the information above and your previous answers,complete(4marks)

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

i kindly need your help and please show calculation please please please


  • Mannaesi
    Mannaesi Registered Posts: 80
    @Emmalouise18 hellows, i kindly need your assistance
  • Mannaesi
    Mannaesi 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
  • homsharma19
    homsharma19 Registered Posts: 3 New contributor 🐸
    do you still need help?
  • larora
    larora Registered Posts: 7
    Can someone confirm the below answer is correct for the above question? I tried but not sure whether it's right.

    Sales - £2,117,000
    Cost of Sales - £1,587,750
    Gross Profit - £529,250
    Selling Cost - £105,850
    Admin Costs - £67,744
    Net Profit - £355,656
  • larora
    larora Registered Posts: 7
    b) Gross Profit Margin - 25%
    Net Profit Margin - 16.8%
    Return on Net Assets - 24.5%
  • larora
    larora Registered Posts: 7
    c) no idea
  • RyanP123
    RyanP123 Registered Posts: 5 New contributor 🐸
    edited September 2022
    Comment removed

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