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BEC-22806 Case 3 calculations and final answers $3.77   Add to cart

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BEC-22806 Case 3 calculations and final answers

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Case 3 of the course BEC-22806 Accounting. This documents contains only the calculations and final answers to numerical questions. The subject of this case is chapter 7,8,9 and 10 of the book Management and cost accounting.

Last document update: 6 year ago

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  • November 1, 2017
  • January 14, 2018
  • 6
  • 2017/2018
  • Case
  • Unknown
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Case 3 – BEC-22806
Calculations and answers
Problem 3.1
1a

Volume Price Total cost

40.000 430,- 17.200.000

50.000 388,- 19.400.000

Difference 10.000 2.200.000

Variable cost 2.200.000/10.000= €220,-

Variable cost at 40.0000= 40.000*220= €8.800.000

Fixed cost at 40.000 = total cost – variable cost = €8.400.000



1b

Volume Price Total cost

Revenue at 65.000 65.000 420 65.000*420 = 27.300.000

Variable cost 220 65.000*220 = 14.300.000

Fixed cost 8.400.000



Profit €4.600.000



1c

Contribution = price – variable cost = 420 – 220 = 200

BEA at fixed cost / contribution = 8.400. = 42.000



1d

Current sales 65.000

BEA 42.000

Margin of safety (65.000-42.000)/65.000 = 35%

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