A Mingoia Company Ltd produced 40,000 lamp poles last year. The following cost data were obtained from 20X7 company records. £ Per unit Direct materials 120,000 3.00 Direct labour 200,000 5.00 Variable overheads 80,000 2.00 Fixed overheads 120,000 3.00 Variable selling admin 40,000 1.00 Fixed selling and admin 80,000 2.00 Sales were £2,500,000 with an average selling price per unit of £62.50. The company's income tax rate last year was 50% and is expected to remain the same next year. Sales in units are expected to remain the same with an increase of 8% in the average selling price. All per unit variable costs are expected to increase by 5%; fixed costs are expected to increase 3%. 30

A Mingoia Company Ltd produced 40,000 lamp poles last year. The following cost data were obtained from 20X7 company records. £ Per unit Direct materials 120,000 3.00 Direct labour 200,000 5.00 Variable overheads 80,000 2.00 Fixed overheads 120,000 3.00 Variable selling admin 40,000 1.00 Fixed selling and admin 80,000 2.00 Sales were £2,500,000 with an average selling price per unit of £62.50. The company's income tax rate last year was 50% and is expected to remain the same next year. Sales in units are expected to remain the same with an increase of 8% in the average selling price. All per unit variable costs are expected to increase by 5%; fixed costs are expected to increase 3%. 30

Name: A Mingoia Company Ltd produced 40,000 lamp poles last year. Thefollow
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Description: A Mingoia Company Ltd produced 40,000 lamp poles last year. Thefollowing cost data were obtained from 20X7 company records.£Per unitDirect materials120,0003.00Direct labour200,0005.00Variable overheads80,0002.00Fixed overheads120,0003.0040,0001.00Va

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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