MANAGEMENT ACCOUNTING - BEP (C PART SOLUTION)

a.     Computation of the profit at the total sales value:

If you which, you can bring down the table again, but I think this is waste of time. So, our profit is:

Fixed Cost is N54,000

Total Cost which is 56,975 for total variable cost and 54,000 for fixed costs amounted to N110,300. Now, 145,500 total sales revenue – 110,300 total cost=35,200. 

So, our profit is N35,200.

If you want it in a table form, it will be thus;

                                                     PRODUCT

	Wafer	Indomie	Cracker	Nut	Total
Sales (Carton)	25	20	30	25
Selling Price Per Carton	1,500	1,250	1,600	1,400
Sales Revenue:	37,500	25,000	48,000	35,000	145,500
Variable Cost Per Carton: Direct material: Direct labour: Direct expenses: Variable Overhead	750 375 625 10,000	500 400 300 9000	1350 900 600 16,000	1000 625 625 14,250	3,600 2,300 2,150 48,250
Variable Overhead Total					56,300
Fixed Cost					54,000
Total Costs (Variable + Fixed)					110,300
Profit (145,000 – 110,300) =					35,200

Again, like I said in (a) part question, the choice is still yours – either to make a table or to go ahead and solve like that. Mind you that management accounting has no format that must be followed.

Now, answer to D: