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- June 8, 2020 at 7:50 pm
Habibi MMC sells one product for which data is given below:
Selling price 14
Variable cost 10
Fixed cost 6The fied costs are based on a budgeted level of activity of 5400 units for the period.
Question 6 How many units must be sold if Habibi MMC wishes to earn a profit of 10000 AZN for one period
Question 7 What is Habibi MMC margin of safety for the budget period if fixed costs prove to be 20% higher than budgeted?
Question 8 If the selling price and variable cost increase by 20% and 12% respecteively by how much sales volume change compared with the original budgeted level in order to achieve the original budgeted profit for the period?June 9, 2020 at 7:21 amDownload or read online the PM notes here https://opentuition.com/acca/pm/
The topic is CVP analysis (Chapter 8).You can access the lecture here https://opentuition.com/acca/pm/acca-performance-management-pm-lectures/
If you do not yet know the basics – what is contribution – the difference between fixed and variable costs, etc you should refer to the MA notes and associated lectures https://opentuition.com/acca/ma/
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