Q.1 Calculate the gross profit margin for Pearson & Litt for 2020. 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R 855 500
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- Question 3: Sohar Company's financial information is given in the table below. Year 2019 2020 Sales (OMR) Fixed Costs | 405000 | 450000 | 90000 120000 Variable Costs | 225000 240000 Calculate: ---uyuie d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000. - VIVI.2019 2020Sales price per unit R15 R19Variable cost per unit R6 R7Fixed cost (FC) per annum R650 000 R 855 500Fixed cost per unit R3 R4 Current assets R450 600 R560 700Current liabilities R510 000 R780 000Retained profit R21 809 R17 600Net Sales R2 900 320 R 3 100 100Cost of sales R390 000 R475 000 Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020.b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference. Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019.b. Explain the results of the current-test ratio.Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 b. Explain the results of the gross profit margin calculation. Q.5.4 a. Differentiate between traditional budgeting and zero-base budgeting.b. Recommend one of these budgeting methods to Pearson & Litt and provide reasons for your recommendationQuestion 3: Sobar Company's financial information is given in the table below. Year |2019 2020 Sales (OMR) Fixed Costs 405000 450000 90000 120000 Variable Costs 225000 240000 Calculate: a) P/V ratio, b) B.E.P. c) Sales required to earn a profit of OMR 40000. d) Margin of safety at a profit of OMR 50000 e) Profit when sales are OMR. 200000.
- The sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 22000: Select one: Oa. OMR 62000 O b. OMR 44000 O c. OMR 72000 Od. OMR 640002019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R 3 100 100 Cost of sales R390 000 R475 000 Q.5.1 Calculate the break-even point for Pearson & Litt for 2019 and 2020 (7). (10) а. b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference (3). Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019 (4). (7) b. Explain the results of the current-test ratio (3). (HINT: Include the minimum ratio recommended for the ratio in your answer.) Q.5.3 a. Calculate the gross profit margin for Pearson & Litt for 2020 (4). (6) © The Independent Institute of Education (Pty) Ltd 2021 Page 7 of 8 19; 20; 21 2021 b. Explain the results of the gross profit margin calculation (2). Q.5.4 a. Differentiate between traditional budgeting and…Question 3: Sobar Company's financial information is given in the table below. Sales (OMR) Fixed Costs 405000 450000 Variable Costs 225000 240000 Year 2019 90000 | 2020 120000 Calculate: a) P/V ratio, b) B.E.P.
- 2019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost (FC) per annum R650 000 R 855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net Sales R2 900 320 R 3 100 100 Cost of sales R390 000 R475 000 Q.5.1 a. Calculate the break-even point for Pearson & Litt for 2019 and 2020 b. Compare the results of the 2019 and 2020 break-even points and explain why there might be a difference Q.5.2 a. Calculate the current ratio for Pearson & Litt for 2019 b. Explain the results of the current-test ratioThe sales and profit for two years are as below: Sales Profit 2019 50000 15000 2020 90000 35000 Calculate Margin of safety at a profit of OMR 22000: Select one: a. OMR 44000 b. OMR 62000 c. OMR 64000 d. OMR 720002019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 1000 Cost of sales R390 000 R475 000 Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 2020.
- 2019 2020 sale price per unit R15 R19 Variable cost per unit R16 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 Q.5.1.1 Calculate the break‐even point for Pearson & Litt for 2019 and 20202019 2020 Sales price per unit R15 R19 Variable cost per unit R6 R7 Fixed cost(FC) per annum R650 000 R855 500 Fixed cost per unit R3 R4 Current assets R450 600 R560 700 Current liabilities R510 000 R780 000 Retained profit R21 809 R17 600 Net sales R2900 320 R3 100 100 Cost of sales R390 000 R475 000 The current ratio reflects the relationship between the value of the current assetsand the extent of the current liabilities of a business. Q.5.2.1 Calculate the current ratio for Pearson & Litt for 2019PROBLEM 2 Information on ABC inventories is shown below: 2019 600,000 2020 Cost NRV 900,000 650,000 400,000 Requirement: Compute for the gain on reversal of write-down to be recognized in 2020 profit or loss.