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Hi please help me with this question on CVP Analysis. I took this from Becker book on the internet but no answer was provided together with it.
A company makes and sells three products, R, S and T. Extracts from the weekly profit statements are as follows:
R S T Total
$ $ $ $
Sales 10,000 15,000 20,000 45,000
Variable cost of sales 4,000 9,000 10,000 23,000
Fixed costs * 3,000 3,000 3,000 9,000
Profit 3,000 3,000 7,000 13,000*General fixed costs absorbed using a unit absorption rate
If the mix of products produced and sold is changed to: R 20%, S 50%, T 30%, what impact would this have on the weighted average contribution to sales ratio?
A. It would increase
B. It would decrease
C. It would remain unchanged
D. It cannot be determined without more informationThank you so much
I cannot believe that Becker have given questions without providing answers!!!
Did you actually purchase the book (if you didn’t then you are acting illegally and unethically!!) – if you did then there must be answer in the book!You need to watch my free lectures on CVP analysis because if you do then the answer will be clear (and I cannot type out all my lecture here).
The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well. The only extra book you need to buy is a Revision Kit from one of the ACCA approved publishers – they contain lots of exam standard questions (together with answers and explanations) and practice is vital to passing the exam.
However you need to buy the book – not download a pirated copy from the internet!!!
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