• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Breakeven analysis

Forums › Ask CIMA Tutor Forums › Ask CIMA P1 Tutor Forums › Breakeven analysis

  • This topic has 1 reply, 2 voices, and was last updated 9 months ago by Cath.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 30, 2022 at 12:47 am #654623
    komalimad22
    Member
    • Topics: 7
    • Replies: 2
    • ☆

    Octa Electronics produces and markets a single product. Presently, the product is manufactured in a plant that relies heavily on direct labour force Last year, the company sold 5,000 units with the following results:

    Sales

    22,500,000

    Less Variable expenses

    13, 500, 000

    Contribution margin

    9,000,000

    Less: Fixed expenses

    6,300, 000

    Net income

    2,700,000

    Required

    A)Compute the break-even point in rupees and the margin of safety.

    B)

    1)What would be the contribution margin ratio and the break-even point in number of units if variable cost increases by K600 per unit? Also compute the selling price per unit if the company wishes to maintain the contribution margin ratio achieved during the previous year.

    2)The company is also considering the acquisition of a new automated plant. This would result in the reduction of variable costs by 50% of the amount computed in (b) above whereas the fixed expenses will increase by 100%. If the new plant is acquired, how many units will have to be sold next year to earn net income of K 3,150,000.

    May 3, 2022 at 9:43 pm #654861
    Cath
    Member
    • Topics: 0
    • Replies: 423
    • ☆☆☆

    Hi Komali,

    Im afraid Im not able to answer this type of question – there have been cases where we have been sent student homework & that is not a service we provide.

    Your example is not a CIMA P1 question ( all CIMA questions are in $ – not rupees) also they are 1.5mins per question – so this is way too long.

    This forum is more to bring up or clarify a specific query not covered by our CIMA P1 tuition material or to provide us with a question (along with the textbook answer) that you would like further explanation or verification of how it should be solved.

    Sorry we cant help on non-CIMA material such as the above

    Cath

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • John Moffat on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis
  • abdallah254 on FA Chapter 2 Questions The Statement of Financial Position and Statement of Profit or Loss
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy