[Nenev]

Million thanks sir,

I did find them..
I was just a little confuse..

Thank you.

You’ve been a great help…:)

[Nenev]

Hello sir,
Sorry maybe I misinterpreted the question..

x is planning the launch of a new football product and 4 possible output levels are being considered depending on consumer reaction. the variable costs associated with these levels are as below:

Consumer reaction Adverse Average Good Excellent
variable costs ($000) 40 60 90 140

Fixed costs of $72000 and c/s ratio is expected to be 60%.

Calculate profit or loss at each of the four levels.

Please explain how to do it sir and am still trying to look for the free lectures to watch not yet seen them

[Nenev]

Hello sir,

I have a similar question to this.

There are 4 products with variable costs given for each.
Fixed costs is $72000 and c/s ratio is expected to be 60%.
How to calculate profit or loss for each.

please explain sir.

[Nenev]

Here it is:
Total number of hours logged for 4 years: 10000 hrs
Total depreciation charged for 4 years: $5500000
Therefore to calculate depreciation for hours logged for each year:

Total depreciation
Total no of hours logged 5500000 / 10000
= $550

Year to 31 January 2018 – 3000 x 550 = $1650000
Year to 31 January 2019 – 2800 x 550 = $1540000
Year to 31 January 2020 – 2300 x 550 = $1265000
Year to 31 January 2021 – 500 x 550 = $275000

Many many thanks 🙂

[Nenev]

Is it okay now
7000000 – 1500000 / 4
= $1375000
Each year depreciation = $1375000

ii) Total number of hours logged for 4 years: 8600 hrs
Total depreciation charged for 4 years: $5500000
Therefore to calculate depreciation for hours logged for each year:

Total depreciation / Total no of hours logged
5500000 / 8600
= $639.53

Year to 31 January 2018 – 3000 x 639.53 = $1918590
Year to 31 January 2019 – 2800 x 639.53 = $1790684
Year to 31 January 2020 – 2300 x 639.53 = $1470919
Year to 31 January 2021 – 500 x 639.53 = $319765

[Nenev]

Thank you so much.
Is the second part correct?
and what are the appropriate ledgers I have to do?

[Nenev]

Hi.. Thank you for your reply.
Is it good the way i did:

Depreciation = Cost – Residual Value / Number of years

7000000 – 1200000 / 4
= $1450000

For Straight Line Method – Income statement = expenses the same amount every accounting period.

Year 2018 – $1450000
Year 2019 – $1450000
Year 2020 – $1450000
Year 2021 – $1450000

ii)Total number of hours logged for 4 years: 10000 hrs
Total depreciation charged for 4 years: $5800000
Therefore to calculate depreciation for hours logged for each year:

Total depreciation
Total no of hours logged 5800000
10000
= $580

Year to 31 January 2018 – 3000 x 580 = $1740000
Year to 31 January 2019 – 2800 x 580 = $1624000
Year to 31 January 2020 – 2300 x 580 = $1334000
Year to 31 January 2021 – 500 x 580 = $290000

[Author]

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