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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Profit volume ratio
A company have the following data for the two years of its operations.
2013 2014
Sales K4,500,000 K5,400,000
Units sold 5,000 6,000
Margin of safety percent -30% -8.33%
Variable production costs K1,250,000 K1,500,000
Variable selling and distribution costs K250,000 K300,000
Required
a) Calculate P/V ratio (2 Marks)
b) Calculate fixed costs per year (5marks)
c) Calculate Break even point in sales value (5 Marks)
d) Calculate profits/losses for 2013 and 2014 (4 Marks)
e) Show that P/V ratio = Change in profit/Change in Sales (2 Marks)
f) Given that margin of safety is 30% for 2015,calculate profit for 2015 (3 marks)
g) Describe any four (4) limitations of CVP (4 Marks)(Total 25 Marks)
Please help me
Profit volume analysis was removed from the Paper MA syllabus many years ago.