Q.2) Tiger Traders is in business of selling breads. Selling Price of bread is Rs 30-per packet which theypurchase at Rs 25/pack. Firm hs to pay a rent of Rs 5000 per month and Rs 20000 per month for otherfixed expensesa) Estimate the Break Even point in Units & Salesb) This Month the firm was able to sell 6000 packets. Estimate his Profit and margin of Safetyc) Estimate number of packets firm need to sell to earn him profit of Rs 10000d) The firm is exploring that if he reduces the price by 5% then estimate how many packets the firmmust sell to earn him profit of Rs 10000(10)

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Q.2) Tiger Traders is in business of…

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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A store sells t-shirts. The average selling price is Rs.15 and the average variable cost is Rs.9. Fixed costs of operating the store (its operating expenses) are Rs. 100,000 per year. Find Break-even in units, P/V ratio and margin of safety. How many shirts must be sold to earn a targeted profit of Rs.20,000?
a. Assume that the cost of goods sold is 60% and that the monthly discount rate is 1%. Looking at the values in the exhibit above, you note that the average monthly revenue for a subscribed customer rises as the company sends more emails. In addition, the average monthly revenue for an unsubscribed customer also rises as the company sends more emails. What could explain both of these patterns? b. Calculate the 6-month LTV for each of the four tested email frequencies. Please show the spreadsheet with your calculations and be clear about any assumptions you are making. c. Based on this test, how many emails-per-week should the company be sending to its customers? This email frequency should apply to all customers; the company doesn't want to implement a different email frequency for different kinds of people
PT. AAH is currently is selling cooking oil for IDR 15.000/litre. Sales (all on credit) last year were recorded at 2.400.000 unit. Variable cost per unit is IDR 9.000/litre. The firm total fixed cost is IDR. 12.000.000.000. The firm is considering changing its credit policy. Assumption: 1 year = 360 days. PT. AAH initiate cash discount program, changing its credit terms from net 30 to 4/10 net 30. This change is expected to reduce the average collectionperiod from 40 days to 25 days. The sales unit is expected to increase 5% from the current level. PT. AAH estimates 85% of its customer will take the discount. The level of bad debt percentage will be decreasing from 2% to 0.5%. The cost of investment in Account Receivable is 17%. Should PT. AAH change its current account receivable policy?Explain your answer
3. Aapki Humaari Beauty LLP requires 12000 units of Bear Shampoo annually as a part of its sales requirement, ordering one month usage at a time. Each shampoo bottle costs Rs 100.The ordering cost per order is Rs 50 and the carrying cost of the average inventory on a yearly basis is 10% You as an adviser to the company advise to buy the most economical order size. a. The company looks forward for your advice on understanding the concept of economic order size. b. Advise what should be desired quantity as per the economic purchase policy of the company and how much the company may save on account of ordering cost. Note : You can round off any number to lower side for the calculation purpose
J) The owner of ATIN Supermarket have been looking for ways to improve sales at store. One of the proposals is to have a weekly raffle with a total price of P6,000 week. For every P20 worth of goods purchased, the customer shall receive numbered ticket for the raffle. The variable cost to print and distribute the tickets b been estimated at one peso (P1.00). Promotions and other fixed costs in connectio with the raffle, likewise, have been estimated at P5,000 per week. The current weeky operating results of ATIN Supermarket are given below. Sales .P600,000 Variable costs 450,000 Fixed costs for the week... 80,000 14. What is the sales revenue required to break-even without the raffle? 15. What is the sales revenue required to break-even with the raffle?
XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a form of accounts receivables to be collected after 3 months, the cost should be paid 65% cash and the rest in a form of accounts payables to be paid after 1 months. Assuming that the company sales increase by 9% monthly and its COGS increases by 7% monthly. The required is to a. Fill the table. b. What does it mean to have negative cash flow while the company is making profits? c. Provide recommendations to XYZ company. \table[[Month, Jan., Feb., March, April, May], [Sales, $125,000,,,,], [COGS, $110,000,,,,], [Cash inflow,...], [Cash Outflow,...], [\table [[Accounting Net], [ Profit/Loss]],.,,,], [NCF,,,,, ]]
Please show the solution in good accounting form. Thank you! Dominic Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the…
Refer to the following data of Good Food Snack House (in the photo) _____22. What is their Cash Conversion Cycle if their Operating Cycle is 135 days?A. 104 days B. 105 days C. 106 days D. 107 days _____23. What is the Average Inventory of Good Food Snack House?A. Php 1,067,570 B. Php 1,607,057 C. Php 1,765,070 D. Php 5,017,657
3.- The Company Surteco sells 10.000 units of their wrapped moluldings for 1.5€/unit, per year. They are offering 3/10, n30, and the discount is taken by 40% of the customers. What is the total value of the Accounts receivable? In order to gain market share against Lamidecor, their competitor, they are thinking about offering 4/5,n45. What is now the new value for accounts receivable if the % of discount taken is still 40%?
Please show your solution in good accounting form. Thank you! JINN Corporation started a promotional program. A towel is offered as a premium to customers who send in 10 box tops of facial soap returned and remittance of ₱25. The distribution cost is ₱10 per towel. The entity estimated that only 60% of the box tops reaching the market will be redeemed. The entity provided the following information: 2020 2021 Facial soap sales, ₱50 per unit ₱ 2,500,000 ₱ 2,875,000 Towel purchases, ₱90 per unit ₱ 337,500 ₱ 360,000 Number of box tops returned 22,500 38,550 Requirements: 1. Compute for the premiums (as an asset) amount for the year ended:A. December 31, 2020B. December 31, 2021 2. Compute for the premiums expense for the year ended:A. December 31, 2020B. December 31, 2021 3. Compute for the premium liability for the year ended:A. December 31, 2020B. December 31, 2021 4. How much net cash did the entity receive (give) with regards to the…
You bought 1000 pcs. bottles with the price of P13 pesos each, so you paid the supplier of the bottles. You sold 400 pcs. ballpens. How much is the cost of good sold?
Suppose that Lou sells 9,000 wheels each month to outside customers. If the transfer pricing formula is used to find the transfer price, what is the appropriate price per wheel? A. P29.50 B. P31.75 C. P39.25 D. P42.00

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