[akshaykopite19]

How come $5340k forms part of $7550k as explained by the book?

[akshaykopite19]

Ok sorry sir..could you please provide the answer to this question? I badly need your help..

Thank you.

[akshaykopite19]

Hello Sir. Thanks for your reply. I have watched your free lectures but cant understand the sentence above. There are two scenarios as far as I can understand. One is covering the production costs only and the other covering the production costs plus the administrative selling, distribution and administration overheads.

If we are covering the production costs only what will be the other costs?? I cant understand Sir. Can you give me an example?

Thanks.

[akshaykopite19]

So what should be done according to the question that I have written above?

[akshaykopite19]

Sir thank you for the answer. I don’t still understand why the closing receivables have not been included? Can you break it down by month by month so as to understand it better?

Thank you.

[akshaykopite19]

Thank you for the answers.

The question reads like this : Jackson Plc expects a new venture to yield a gross profit of 50% on sales.

Fixed salary costs are expected to be £23,250 per month and other expenses are expected to be 8% of sales.
Calculate the sales revenue necessary to yield a monthly profit of £58,800.

[akshaykopite19]

Closing balance on trade receivables has been invoiced on 30 Nov 2007 and not 30 Dec 2007. Sorry

[akshaykopite19]

Can you give me a full example with the fixed production overhead? I can’t understand your reply very well.

Thank you.

[akshaykopite19]

Thank you very much for the answer Mrs Kim.

It says in th1 Study Manual the contribution from the increase in volume of 1000 units is not enough to cover the variable costs that is why the proposed changes are not worthwhile. This is what I am not able to understand. Can you show me the workings about how to find contribution for 1000 units and whether it covers the variable costs or not?

Thank You.

[akshaykopite19]

Hello Mrs Kim. Thank you very much for the answer. I cannot understand the different scenarios when there is a perfectly competitive market, when there is surplus and excess capacity. In this scenario there is excess capacity ( meaning no spare capacity). Can you tell me what will be the point of view of Division N? I need illustrations from both the point of views of the selling division as well as the buying division to be able to understand.

If you can recommend a book on these different scenarios, it will be better for me to understand. What do you recommend Mrs Kim?
Thank You.

[akshaykopite19]

Ok sorry madam. I’ve posted the questions to the ICAEW forums.
Thank You

[akshaykopite19]

Dear Mrs Kim. help you for the explanantion. What about the second part about Divions M and R?

[akshaykopite19]

Yes it’s ICAEW. Can you explain it to me clearly with your workings? What about part 2?

[Author]

Posts