• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
OpenTuition | ACCA | CIMA

OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Forums
  • Search
  • Register
  • Login
  • Latest
  • ACCA
  • Ask ACCA Tutor
  • OBU
  • CIMA
  • Ask CIMA Tutor
  • FIA
  • Buy/Sell
  • Qualified
  • Forum Rules

CVP analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › CVP analysis

  • This topic has 2 replies, 2 voices, and was last updated 8 months ago by John Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • May 1, 2020 at 3:00 am #569642
    narzila
    • Topics: 2
    • Replies: 1
    • ☆

    Hi,

    Seek for your guidance on the below question. Which of these method / answer is correct?

    Mabel Co manufactures and sells tables and chairs in a standard mix of one table to four chairs.

    The following information is available:

    Product Table Chair
    Variable cost per unit ($) 120 16
    Contribution sales ratio 0.4 0.6

    Annual fixed costs are $100,000.

    What is the break-even point in sales revenue (to the nearest hundred dollars)?

    May 1, 2020 at 3:01 am #569643
    narzila
    • Topics: 2
    • Replies: 1
    • ☆

    Method 1 ( BPP book)

    BEP in sales rev. = FC ÷ weighted avg C/S ratio
    = 100,000 ÷ [(0.4 x 1) + (0.6 x 4) ÷ (1 + 4)
    = $ 178,571.43

    May 1, 2020 at 10:35 am #569667
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 41510
    • ☆☆☆☆☆

    The correct method is the method that I show in my free lectures on multi-product CVP analysis.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from our materials please donate

Donate now

You can also "donate your time" and help out other students on the Students Forums

Specially for OpenTuition students

20% off ACCA Books

Get BPP Discount Code

Latest comments

  • krasnocudek on IFRS 5 – Example 1 – CIMA F1 Financial Reporting
  • Ken Garrett on CIMA E1 Chapter 2 Test
  • ims102 on Revenue – Example (LiverTech) – ACCA Financial Reporting (FR)
  • anjanlila on PPE – Depreciation – ACCA Financial Reporting (FR)
  • PrashanthKumar1987 on CIMA E1 Chapter 2 Test

Copyright © 2021 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


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