Practice Assessment 2 - Task 6
Zana
Registered Posts: 27
Hi,
Can someone please help me with this task?
Any help would be much appreciated! Thank you!
Can someone please help me with this task?
Any help would be much appreciated! Thank you!
0
Comments
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@Zana I am assuming you mean the starred question ? Breakeven = Fixed costs/ contribution. so in this case 6310150/35(contribution per seat)= 180290.
To get the 35 ( selling price per seat-contribution per seat) so £70-£35
Hope this helps0 -
Hi @Lyndsey1570, thank you! do you think you could help me with the rest as well? The star was there just for me-question, that I am struggling with... I am sorry for the confusion...0
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no problem @Zana sorry here's the breakdown of how i worked this answer out
So Selling price per seat = Turnover/occupied seats (16800000/240000) = £70 per seat
Occupancy rate %= occupied seats/ available x 100 (240,000/300,000 x 100) = 80%
Variable cost per seat occupied= variable costs/ occupied seats (8400000/240000) = £35
Gross profit margin (says in question assume GP excludes fixed costs)= Variable costs/turnover (8400000/16800000 x 100) = 50%
Fixed costs per seat occupied = fixed costs/ occupied seats = (6310150/240000)= £26 remember to round up to nearest whole number
Contribution per seat = Sales price-variable costs = £70-£35=£35
Breakeven = see above answer
Breakeven turnover £ breakeven in seats x sales price = 180290 x £70= £12620300
Margin of safety = Occupied seats - breakeven/ occupied seats x 100 so 240,000- 180290/240000 x 100 = 24.88%
Mark up on total cost = profit/total cost x 100 = turnover - variable costs- fixed costs = (16800000-8400000-6310150) = 2089850
Total costs = variable costs + fixed costs = 14710150
Therefore answer is 2089850/1470150 x 100 = 14.21%
Any questions just let me know sorry if i have laid this out really confusing Goodluck for the exam whenever it is!1 -
Wonderful! Thanks a lot @lyndsey1570 !!!0
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Thank you a lot for your the answer. @lyndsey15700
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