NO PHOTO OR HANDWRITING CLEAR SCHEDULE
YOU CAN PUT ANY FIGURE ITS ASSUMPTIONS
- Akbar Company is producing two types of products i.e.Product A and Product B. You are required to show quantitativeanalysis of one constrained resource i.e. total available machinehours. The following is a contribution income format of thecompany.
(use your own figures in thefollowing table)
| Product A | Product B |
Selling Price PerUnit | | |
Variable Cost PerUnit | | |
Contribution Margin Perunit | | |
Contribution MarginRatio | | |
Required MachineHour/Unit | | |
Assume a figure for total available machine hours as a constrainedresource.
Determine the following:
- What is the total contribution margin if only Product Ais produced?
- What is the total contribution margin if only Product Bis produced?
Solution: The answers of allthe students will differ.
- Prepare a cash flow statement from the followinginformation under indirect method.
(Assume your ownfigure)
| Amount ($) |
Net Income | |
Cash and Cash Equivalent inthe beginning | |
Amortization of IntangibleAssets | |
Depreciation | |
Gain on sale offurniture | |
Purchase ofMachinery | |
Borrowed fromBank | |
Issued PreferenceShares | |
Increase inReceivable | |
Decrease in OutstandingExpenses | |
DepreciationExpense | |
Sale of Furniture | |
Solution: There will bedifferent answers for all students.
3-You are required to allotthe support department cost to operations department by taking anySaudi based operating company.
Solution: There will bedifferent answers for all students.
