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Sir Moffat,
Am in a study group with some friends and we just want to be corrected on what to do on the sales figure only. We are able to calculate the rest of what is required to be calculated.
The following information for the year to December 20X9 is available for Fun co. which operates in the toy and games industry.
Sales $ 7 660 000
Gros profit $1,200 000
Operating Profit $ 590 000
Capital Emplyed $3,330 000
Current Assets $ 400 000The cost of capital for fun co is 12%.
Fun Co. sold 350,000units in the year ended 31 December 20X9. Total sales for Toys and games industry for the year ended were $61,280,000.Required:
calculate the following operationg profit margi, Asset turnover, ROI,RI Market share.There are arguments that the sales figure on top is supposed to subtracted from the other sales figure or it is supposed to be added to other sales figure. Which one is which. the question does not provide solutions . we need your assistance
The total sales for the industry of 61,260,000 will include the sales made by Fun Co of 7,660,000.
However I don’t know why you want to add or subtract one from the other. The only relevant of the sales for the industry is in order to calculate the market share of Fun, which will be 7,660,000/61,280,000 = 12.5%
You really should be using a Revision Kit from one of the ACCA approved publishers for practice – they contain lots of exam standard questions together with answers and explanations. It is wasting your time attempting questions for which you do not have answers.
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