1. avatar says

    Hi John

    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:

    Revenue: 100
    Variable cost 40
    Fixed cost 20
    Profit 40

    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 %.’

  2. avatar says

    Hi John

    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?

  3. Profile photo of sneha g says

    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 ?

  4. avatar says

    Please any one can tell me if it is necessary to complete Professional ethics module to convert from FIA suite to ACCA qualification.
    I have passed my FIA papers but still not converted to ACCA qalification from FIA suite.Please guide me what next to do…………………?

  5. avatar says

    breakeven point should be at the point where revenue line cross the fixed cost line and lose range would b under the fixed cost line? this is my understanding sorry!!!, but in lecture breakeven is being point out where total cost cross the total revenue? lost also showing same way?, Am really confuse about it!! i would be great full if you could explain it please. thx.

    • Profile photo of John Moffat says

      Your understanding is wrong.

      Breakeven is when the profit is zero. Profit will be zero when the total revenue is equal to the total costs (fixed costs + variable costs).

      I think that what you are confusing it with is that for zero profit, the total contribution will be equal to the fixed costs – contribution equals the revenue minus the variable costs.

      You should watch the lecture again slowly.

  6. avatar says

    Hello John,

    Thanks for great lectures. Just wanted to ask how important is CVP for Dec 2012 exams, as i checked the exam kit and CVP doesn’t seem to appear in last 6 exam sessions though it appears as a part of the syllabus. I’m a bit confused.


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