Академический Документы
Профессиональный Документы
Культура Документы
Prepared For:
PROF. MADYA .IR. SALIHUDIN BIN HJ HASSIN
Prepared By:
MAGED MOHAMMED AHMMED GS38690
Problem 10:
Determine the break-even volume of work for a company with a fixed overhead of $72,000 and a
contribution margin ratio of 14.0%.
Problem 12:
Determine the break-even volume of work for a company with a fixed overhead of $63,000, a
contribution margin ratio of 11.0%, and a required level of profit of $60,000.
Problem 14
A construction company has a fixed overhead of $ 60,000 and a variable overhead of 2.5 % of
revenue. Historically, construction costs have been 88 % of revenue what is the maximum amount
of sales that are required to break -even.
By using equation and setting the profit equal to zero. We get the following:
Problem 18:-
Determine the breakeven contribution margin ratio for accompany with a fixed overhead of $
92,000 revenues of $ 450,000, and a required level of profit of $ 45,000.
By using following equation and setting the profit equal to $ 45,000. We get the following:
The company described in problem 18 will need to maintain a contribution margin ratio of 30.4%
in order to meet profit requirements. If the contribution margin ratio is less than 30.4% the
company will not meet its profit requirement. If the contribution margin ratio is greater than 30.4%
the company will exceed its profit requirement.
Problem 22:-
Your construction company recently bid against ABC Construction Company. Your construction
costs were $ 1,125,572 and you added a 6 % profit and overhead markup for a total bid of
$1,193,106 .ABCs bid was $1,179,999 .what profit and overhead markup would you need to add
to your construction costs to get ABCs bid.
By using the following equation the profit and overhead determine as following:
Bid
P and O Markup 1
Construction Cost
Bid $1,179,999
P and O Markup 1 1 0.048 or 4.84%
Construction Cost $ 1,125,572