Management Accounting

Jul 28th, 2016
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Trinity College of Florida
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ALL TO TO WITH CVP ANALYSIS: how to determine BEP; manipulate the cCVP equation in an Examination Scenario.

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KENYA COLLEGE OF ADVANCED ACCOUNTINGPaper B342: Management Accounting.CAT For the end of July 2014Topic Covered: CVP analysis.Instructions: Answer all the questions provided. Marks allocated to each questionsare shown alongside.Qn.1The following information relates to Plutonic stores Ltd.Fixed costs $ 30,000 per period.Variable costs $5 /UnitSelling Price $8 /UnitRequired:a) Compute the breakeven sales in units and in dollars( 3m)b) Calculate the margin of safety at the 12000 unit level(3m)c) Find the income when sales are $120000( 4)d) Compute the sales in units required to produce a net income of $ 10000. (3m)e) Calculate the sales in units required to produce a net income of 10% of sales( 3m)f) Find the breakeven in units if variable costs are increase by $1 per unit and if total fixed costsare decreased by $5000. (4m)Qn2.The Candy Company is a wholesale distribute

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