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February 4, 2016 at 10:35 am
How did you get a negative 16.7% for the MOS?
Mine was positive.
John Moffat says
February 4, 2016 at 2:42 pm
I assume by MOS you mean margin of safety (but don’t abbreviate it in the exam – it is not a standard abbreviation).
If you listen to the lecture at about 14 minutes in, I explain this!
It is 16.7%, but strictly it is minus 16.7% because we are only worried if the level of sales falls. We are certainly not worried if it increases by 16.7%
October 7, 2015 at 12:16 am
Hi ,sir john Moffat thank you for another great lecture,you are amazing
October 7, 2015 at 8:36 am
April 29, 2015 at 4:23 pm
I was practising few CVP questions from Kaplan and in one of the questions they asked to calculate the BE point in terms of Units and $ of revenue so if it is asked in exam and if I’m calculating BE in revenue terms do I have to calculate the CS ratio first and then divide fixed cost by CS ratio or can I do just multiply the BE units with the Selling price to reach the answer do I have to elaborate it or just multiply directly.
April 29, 2015 at 4:26 pm
It doesn’t matter which you do, but it will be more sensible to simply multiply the units by the selling price.
March 6, 2015 at 10:05 am
I am confused Here:
Currently: SP was 20. Vc was 8. Fc was 840000pa.
So breakeven was 840000/12 which is 70000units.
But When they carriedout newplant FC Has 1200000pa But Vc decreased to 5pu.
So Now breakeven was 1200000/20-5 which is 80000units.
Now if the Company Wanted to B/even same quantity as old the Selling Price would be like: 70000*X=1200000 which comes 17.14 for the Contribution PU. So 17.14+Vc 5 which is 22.14 will be the selling price.
The Next part is confusing for me: Please help me here more.
If the new plant is built, the company would wants to decrease its price to $19 to improve its competitive position.
i. At which quantity would profits of the old and the new plants be equal (assuming the price of a toaster is $20 for the old plant but $19 for the new)? How much would the profit be at this quantity?
ii. If sale are projected to reach 150,000 units per year in the near future, would you recommend construction of the new plant? Why or why not? (Assume that both plants have the capacity to produce this quantity.)
Can you please Tell me how to do this one. Please soon. Thankx
January 9, 2015 at 11:47 pm
How would I work this out,
‘The budgeted profit statement of a company, with all figures expressed as a percentage of revenue is as follows:
Variable cost 40
Fixed cost 20
If the sales volume turns out to be only 80% of that budgeted, the profit, expressed as a percentage of the revised revenue will be in %.’
January 10, 2015 at 11:31 am
Please ask questions like this in the Ask the Tutor Forum – not as comments on lectures.
January 9, 2015 at 10:22 pm
Could you please work this out: Revenue for Product A = $10m C/S ratio: 15%,
Product B: $20m C/S ratio: 10%
Total fixed cost: $5.5m and company wants to earn a profit of $1m
What is the revenue that needs to be generated by Product C, in million, to achieve the required profit?
July 15, 2014 at 4:07 am
Hi Sir, will I loose marks in exam if I use pen to draw graphs? The graph paper I am currently using to practice is very deep and the graph is not showing as clearly.
July 15, 2014 at 9:22 am
You have to use a black pen in the exam for everything, including for graphs.
July 15, 2014 at 10:33 am
Noted!Thank you Sir!
sneha g says
October 21, 2013 at 7:47 am
I am not attending any formal coaching… . I would like to know why many. Sites ask us to refer to the student articles . Why are these articles so important ? Does a certain percentage of the question paper happen to be from the articles ?
October 21, 2013 at 11:09 am
The articles in Student Accounting are always useful and worth reading – especially those by the examiner because it lets you know how they are thinking.
Although the articles are all obviously on topics in the syllabuses, each exam does not necessarily include topics covered in the articles.
October 21, 2013 at 5:14 pm
Oh okie Thankyou Sir …
April 17, 2013 at 1:25 pm
How to download this vedio? I cannt do it using realplayer
April 17, 2013 at 5:28 pm
Sorry, the videos are not downloadable. It is the only way that we can keep this site free of charge.
April 17, 2013 at 1:23 pm
in Arabic… ????
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