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Profit volume ratio

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Profit volume ratio

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by AvatarJohn Moffat.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • June 4, 2021 at 9:58 am #623091
    AvatarNtubuluke
    Participant

    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)

    June 4, 2021 at 10:00 am #623092
    AvatarNtubuluke
    Participant

    Please help me

    June 4, 2021 at 1:38 pm #623128
    AvatarJohn Moffat
    Keymaster

    Profit volume analysis was removed from the Paper MA syllabus many years ago.

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • The topic ‘Profit volume ratio’ is closed to new replies.

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