QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) isRM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) isRM100. If you sell 12 watches in 1 month, how much will you eam / lose?(a) Calculate the Gross Profit / Loss(b) Calculate the Net Profit / Loss(c) Calculate the Break Even Point in units.QUESTION 2Ahmad is selling shoes in IOI Malls. If the selling price (SP) per shoes is RM20 perunit and total quantity sold were 500,000 units. The fixed cost (FC) involved wereRM40,000 with a variable cost (VC) of RM10 per unit.a) Calculate the Total Revenue (Gross Profit).b) Calculate the Total Cost.c) Calculate the Net Profit.d) Calculate the Contribution Margin.e) Calculate the Break Even Point (in quantity).f) Calculate the Break Even Point (in Ringgit).g) Calculate the Target Quantity (unit) if the target desired profit is RM100,000.Note:TR=PxQ; GP= TR-TC; TC=FC+VC; VC=UVCXQ; CM=P-UVC;BEP(U)=FC/CM; BEP(RM)=BEP(Q)xSP(per unit); TQ(perunit)=FC+PD/SP(per unit)-VC(per unit) QUESTION 3Use the following information to answer Ql & Q2At December 31 AFN Restaurant records show the following information:$ 10,000CashAccounts Receivable30,00080,000InventoryPrepaid InsuranceLong-term AssetsAccounts PayableNotes Payable due in 10 monthsWages PayableLong-term LiabilitiesStockholders' (Owner's) Equity6,000200,00030,00025,0005,00070,000196,00011. Calculate the company's current ratio.2. Calculate the company's quick ratioThe following is the Balance Sheet of a Sweets Company as on 31* March.(Ans Q3-Q6)RMLiabilitiesASSETSRMShare Capital200,000 Land and Buildings30,000 Plant and Machinery40,000 Stock/Inventories (CA)420,000 Sundry Debtors(CA)100,000 Bills Receivable(CA)50,000 Cash at Bank (CA)840,000140,000Profit & Loss Account350,000General Reserve12% DebenturesSundry Creditors (CL)Bills Payable (CL)200,000100,00010,00040,000840,0003. Calculate the Current Ratio for Sweets Company.4. Calculate the Quick Ratio for Sweets Company.5. Calculate the Inventory to Working Capital for Sweets Company.6. Calculate the Debt to Equity Ratio for Sweets Company.

Name: QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie
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Description: QUESTION 1Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) isRM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) isRM100. If you sell 12 watches in 1 month, how much will you eam / los

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QUESTION 1 Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) is RM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) is RM100. If you sell 12 watches in 1 month, how much will you earn / lose? (a) Calculate the Gross Profit / Loss (b) Calculate the Net Profit / Loss (c) Calculate the Break Even Point in units.

QUESTION 1 Izdham sell watches at RM10 each and his variable costs (ie plastics and metal) is RM3 for each watch. To sell this watch, the fixed cost (i.e flat fee of rent, salary) is RM100. If you sell 12 watches in 1 month, how much will you earn / lose? (a) Calculate the Gross Profit / Loss (b) Calculate the Net Profit / Loss (c) Calculate the Break Even Point in units.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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