# financial performance task 1.8 paper 2

jazzies123
Registered Posts:

**8**
Hi Guys!

Does anyone know any ideas on task 1.8 on the paper 2 please?

thanks

sara

Does anyone know any ideas on task 1.8 on the paper 2 please?

thanks

sara

0

jazzies123
Registered Posts: **8**

Hi Guys!

Does anyone know any ideas on task 1.8 on the paper 2 please?

thanks

sara

Does anyone know any ideas on task 1.8 on the paper 2 please?

thanks

sara

0

## Comments

17a) £120,000

Workings: £90 selling price minus the cost of £70 = profit per unit = £20 x 6000 units = £120,000

b)£70 x 8000= £560,000 sales

The variable costs are - £30 x 8000 = £240000

Fixed costs are then flexed. £24 x 10,000/8000 =£30

£30 x 8000 = £240,000

Sales of £560k minus all costs of £480k = £80k

c)£70 x 10,000=£700k

The variable costs are - £30 x 6000 = £180,000

Fixed costs are then flexed. £24 x 10,000/6000 = £40

£40 x 6000 = £240,000

The extra 4000 then cost £45 x 4000 = £180,000

Sales of £700k minus all costs of £600k = £100k Profit

d)£50 / 80% = £62.50

As the 20% is profit margin.

e)£80 x 30% = £24

£80 + £24 = £104

Hope this helped.

1I was looking for this answer.

Well explained - cheers x

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