Profit Target – NBC Institute

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

Question

PQRS is a manufacturing company in Abuja producing a single product called QR. The selling price of the product is ₦250 with a marginal cost of ₦160, while the fixed cost is ₦1,800,000 per annum.

You are required to calculate:

Number of units to break even (2 Marks)
Contribution/Sales ratio (2 Marks)
Sales value at breakeven point (2 Marks)
Number of units to be sold to achieve a profit of ₦450,000 (2 Marks)
At a margin of safety of 50%, prepare a statement using the profit to be achieved (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-even Analysis, Contribution Ratio, Profit Target
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: NOV 2021

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

Question

PQR produces a single product QR which sells for ₦500 with a variable cost of ₦340. The fixed cost of ₦5,520,000 was accrued evenly over the year and the company wants to achieve a monthly target profit after tax of ₦960,000. Considering a company tax rate of 20%, calculate the level of monthly sales required to achieve the target profit.

A. 40,500 units
B. 39,500 units
C. 34,500 units
D. 10,375 units
E. 8,875 units

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-Even Point, CVP Analysis, Profit Target
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2022

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

Question

You are required to calculate:

Number of units to break even (2 Marks)
Contribution/Sales ratio (2 Marks)
Sales value at breakeven point (2 Marks)
Number of units to be sold to achieve a profit of ₦450,000 (2 Marks)
At a margin of safety of 50%, prepare a statement using the profit to be achieved (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-even Analysis, Contribution Ratio, Profit Target
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: NOV 2021

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

Question

A. 40,500 units
B. 39,500 units
C. 34,500 units
D. 10,375 units
E. 8,875 units

Answer

Find Related Questions by Tags, levels, etc.

Tags: Break-Even Point, CVP Analysis, Profit Target
Level: Level 1

Topic: Cost-Volume-Profit (CVP) Analysis
Series: MAY 2022

Question Tag: Profit Target

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

Our offerings

Contact Info

Customer

Get In Touch

Question Tag: Profit Target

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

You're reporting an error for "MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis"

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

You're reporting an error for "MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis"

MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis

Calculate break-even point, contribution/sales ratio, sales value at break-even, and units to achieve profit.

You're reporting an error for "MI – Nov 2021 – L1 – SB – Q3a – Cost-Volume-Profit (CVP) Analysis"

MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis

Determining monthly sales required to achieve a target profit.

You're reporting an error for "MI – May 2022 – L1 – SA – Q10 – Cost-Volume-Profit (CVP) Analysis"

Our offerings

Contact Info

Customer

Get In Touch

admin