question archive After a few years of operation on the market, Beyblade Limited is currently operating at 75% of its capacity

After a few years of operation on the market, Beyblade Limited is currently operating at 75% of its capacity

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After a few years of operation on the market, Beyblade Limited is currently operating at 75% of its capacity. In the past two years, the company's levels of operations were 55% and 65% respectively. The current production and sales level in 2020 are actually 75,000 units. The company is targeting a capacity level of 85% for the next financial year in 2021, despite covid-19 impacts. The following cost details are available:
75% Direct Materials ($) Direct Labour($) Production overheads ($) Sales overheads ($) Administrative overheads ($) 55% 1,100,000 550,000 310,000 320,000 160,000 65% 1,300,000 650,000 330,000 360,000 160,000 1,500,000 750,000 350,000 400,000 160,000 Profit margin is estimated to be 20% on sales. For the next financial year, costs are expected to increase by the following percentage: Direct materials 8% Direct Labour 5% Variable production overheads 5% Variable selling overheads 8% Fixed production overheads 10% Fixed selling overheads 15% Administrative overheads 10% REQUIRED: Assuming no inventory is kept, prepare a Flexible Budget for the next financial year 2021 at 85% capacity level, showing clearly Total Cost, Profit and Total Sales.

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