A company have the following data for the two years of its operations. Sales 2013...
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A company have the following data for the two years of its operations. Sales 2013 K4,500,000 2014 K5,400,000 Units sold 5,000 6,000 Margin of safety percent -30% -8.33% Variable production costs K1,250,000 K1,500,000 Variable selling and distribution costs K250,000 K300,000 Required a) Calculate PN ratio (2 Marks) b) Calculate fixed costs per year (5marks) c) Calculate Break-even point in sales value. (5 Marks) d) Calculate profits/losses for 2013 and 2014 (4 Marks) e) Show that PN ratio = Change in profit/Change in Sales (2 Marks) f) Given that margin of safety is 30% for 2015, calculate profit for 2015 (3 marks) g) Describe any four (4) limitations of CVP | (4 Marks) (Total 25 Marks)
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