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Q1. This year, the output is 5,000 units and the overhead cost is $31,000.
Three year ago, the output was 2,000 units and the overhead cost was $8,800.
The price index was 132 three years ago and is 164 this year.
Using high low technique, what is the variable cost per unit (to the nearest $0.01) expressed in current year prices?Q2. Cherry Ltd Information:
Sales (all credit) $500,000
Purchases (credit) $200,000
Operating Profit $40,000
Capital Employed $200,000
Average receivable $30,000
Average Payables $16,000
No;of books sold 60,000
No, of books returned 1,200
No of on time deliveries 58200
No: of website visits 6000000Calculate the assets turnover?
Calculate the % of website visits converted into sales (to the nearest%)?Dear Sir,
Good day to you.
Kindly explain the above questions?
Q1 The cost 3 years ago was 8,800. If we express it in current year prices it is 164/132 x 8800 = 10933.
Now it becomes a normal high-low question. High is 5,000 units, cost $31,000; Low is 2,000 units, cost $10,933
Q2 Asset turnover = sales / capital employed = 500,000 / 200,000
Website visits that become sales = number sold / number of visits = 60,000 / 6,000,000
Dear John
How do we calculate the receivable and payable days from the info provided?
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