Company has fixed expenses of Kshs. 90,000 with sales at Kshs. 300,000 and a profit of Kshs. 60,000. Calculate the Profit – Volume ratio. If...
(Solved)
(a) Company has fixed expenses of Kshs. 90,000 with sales at Kshs. 300,000 and a profit of Kshs. 60,000. Calculate the Profit – Volume ratio. If in the next period, the company suffered a loss of Kshs. 30,000. Calculate the sales Volume.
(b) What is the margin of safety for a profit of Kshs. 60,000 in (a) above?
Date posted:
April 15, 2019
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Answers (1)
The following information relates to production and sales of an article for January and February 2004.
(Solved)
The following information relates to production and sales of an article for January and February 2004.

(i) Break – even sales volume
(ii) Profit or loss at Kshs. 46,000 sales
(iii) Sales to earn a profit of Kshs. 5,000.
Date posted:
April 15, 2019
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Answers (1)
The following figures of sales and profits for two periods are available in respect of a concern:
(Solved)
The following figures of sales and profits for two periods are available in respect of a concern:

You are required to find;
(i) P/V ratio
(ii) Fixed cost
(iii) Break – even point
(iv) Profit at an estimated sale of Kshs. 125,000
(v) Sales required to earn a profit of Kshs. 20,000
Date posted:
April 15, 2019
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Answers (1)
(a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point.
(Solved)
(a) Fixed costs Kshs. 40,000 variable cost 60% on sales. Determine the break – even point.
(b) Find out new break - even point if;
(i) Fixed costs increase by Kshs. 10,000
(ii) Variable costs increase by 15% on sales
(iii) Sales price increases by 20%
(iv) Variable costs are reduced by 10%
Date posted:
April 15, 2019
.
Answers (1)