Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

1. Below is an excerpt from the annual costs of the A / S \"Furniture Design in

ID: 2597837 • Letter: 1

Question

1.Below is an excerpt from the annual costs of the A / S "Furniture Design in euro:

Screws 5500

The administration's salary 110 000

Electricity costs for office premises 1500

Cost of furniture fabrics 25 000

Permanent wages and salaries of production 160 000

Nails 400

Commission fee for sales agents 80 000

Vacation money 54 000

Social costs 45 000

Repair costs 2500

Timber 740 000

Utilization of electric tools 1000

Social Security 1 900

Office space rent 3000

Telephone costs 2000

Direct piece cost in production 100 000

Depreciation of fixed assets 9500

Bank service costs 300

Sales agents for transport costs and nutrition 8500

Percentage on the loan in the bank 6500

Insurance for 1900

You must group the costs according to the cost of their materials, labor costs, other production costs, sales and administration costs, depreciation deductions and financial costs.

2.The following balance sheet sections were found:

Capital investment 100 000

Company car 22 000

Goodwill of the company 47 500

Office equipment 22 500

Retained earnings 75,000

Loan with local bank 70 000

Receivables 55,500

Debt to suppliers 45 000

Office space 87 000

Taxes 25 000

Deposit in bank 15 500

Group the section by finding the right place on balance sheet:

Active

Passive

3. What information is needed to calculate the non-losing point price?

A fixed costs, variable costs, planned sales;

B variable costs and planned sales;

C constant costs, variable costs and expected returns;

D fixed costs and planned sales.

4. Do you agree with the following statements?

Allegation Yes /No

A.The break even point point is a situation in which the revenue from

sales are equal to costs.

B.Break even point is affected by constant cost changes.

C.The break even point is not affected by changes in production volume.

D.Break even point indicates which sales should be

in order to avoid losses for the company.

5. If the wood processing company leases its production equipment to another company, then will increase the company

A total cost;

B financial operating income;

C gross margin;

D operating revenue.

6. The company must take a decision on the production and marketing of the product:

                                              Basic                  1. option              2.option        3.option        3.option

Produce variables costs     16,5 EUR         - 2,2 EUR             + 1,4 EUR             + 1,8 EUR

Sales Variable costs           2,2 EUR              2 EUR                  2,4 EUR                2,8 EUR   

Fixed costs                    45 000 EUR         + 6 000 EUR        + 15 000 EUR         + 8 000 EUR

Sales vol. of production   5 200                              5 300                 6 100              5 400

Products unit price           32 EUR       28,5 EUR                34,2 EUR        33,2 EUR

Task:

1. For each option, calculate the critical point ; Choose the best option;

2. For each option, construct a critical point diagram.

Active

Passive

Explanation / Answer

1. Grouping of Costs.

Expense

Materials

Labor Cost

Other production

Sales & Admin

Depreciation deduction

Financial costs

Screws

5,500

Admin salary

110,000

Electricity cost for office

1,500

Cost of fabric

25,000

Wages

160,000

Nails

400

Commission sales agent

80,000

Vacation Money

54,000

Social Costs

45,000

Repair Costs

2,500

Timber

740,000

Utilization of electric tools

1,000

Social Security

1,900

Office Space rent

3,000

Telephone costs

2,000

Direct piece cost

100,000

Depreciation

9,500

Bank Service cost

300

Sales agents for transport cost

8,500

Percentage on the loan in bank

6,500

Insurance

1,900

TOTAL

870,900

163,800

48,500

259,000

9,500

6,800

Expense

Materials

Labor Cost

Other production

Sales & Admin

Depreciation deduction

Financial costs

Screws

5,500

Admin salary

110,000

Electricity cost for office

1,500

Cost of fabric

25,000

Wages

160,000

Nails

400

Commission sales agent

80,000

Vacation Money

54,000

Social Costs

45,000

Repair Costs

2,500

Timber

740,000

Utilization of electric tools

1,000

Social Security

1,900

Office Space rent

3,000

Telephone costs

2,000

Direct piece cost

100,000

Depreciation

9,500

Bank Service cost

300

Sales agents for transport cost

8,500

Percentage on the loan in bank

6,500

Insurance

1,900

TOTAL

870,900

163,800

48,500

259,000

9,500

6,800