Accounting homework help

Accounting homework help.  
 
 
 
Q14 Complete the table below to examine the budgeted profitability of each sales channel per unit.
(3 marks)

  B2B Online Retail
Sales               (£ per unit) 45 64 75
variable cost (£ per unit) 16 15 14
Direct costs   (£ per unit) 18 19 20
 
Contribution (£ per unit)      
Cost of sales  (£ per unit)      
Gross profit   (£ per unit)      

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q15 Chain&Gear would like to incorporate the profitability analysis in Q14 above, into monthly reporting, and is considering the following enhancements to the regular management report:
 

  • Describe how ‘variance analysis’ could be presented in the profitability report.

(2 marks)
 
 
 
 
 
 

  • What would be the benefit of variance analysis in the report?

(2 marks)
 
 
 
 
 
Q15 Continued
 

  • Describe how forecasting information could be presented in the profitability report.

 
(2 marks)
 
 
 
 
 
 
 

  • What would be the benefit of forecasting information in the report?

(2 marks)
 
 
 
 
 
 
 
 
 
 
 

  Present Value Table                 Annuity Table                  
  Discount Rate   Discount Rate
End of Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%   No. of Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%  
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909  
2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736  
3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487  
4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170  
5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791  
6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355  
7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868  
8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335  
9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759  
10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145  
                                             
  Discount Rate   Discount Rate  
End of Period 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%   11% 12% 13% 14% 15% 16% 17% 18% 19% 20%  
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833  
2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 2 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528  
3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 3 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106  
4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 4 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589  
5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 5 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991  
6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 6 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326  
7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 7 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605  
8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 8 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837  
9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 9 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031  
10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 10 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192  
                                             
  Discount Rate   Discount Rate  
End of Period 21% 22% 23% 24% 25% 26% 27% 28% 29% 30%   21% 22% 23% 24% 25% 26% 27% 28% 29% 30%  
1 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769 1 0.826 0.820 0.813 0.806 0.800 0.794 0.787 0.781 0.775 0.769  
2 0.683 0.672 0.661 0.650 0.640 0.630 0.620 0.610 0.601 0.592 2 1.509 1.492 1.474 1.457 1.440 1.424 1.407 1.392 1.376 1.361  
3 0.564 0.551 0.537 0.524 0.512 0.500 0.488 0.477 0.466 0.455 3 2.074 2.042 2.011 1.981 1.952 1.923 1.896 1.868 1.842 1.816  
4 0.467 0.451 0.437 0.423 0.410 0.397 0.384 0.373 0.361 0.350 4 2.540 2.494 2.448 2.404 2.362 2.320 2.280 2.241 2.203 2.166  
5 0.386 0.370 0.355 0.341 0.328 0.315 0.303 0.291 0.280 0.269 5 2.926 2.864 2.803 2.745 2.689 2.635 2.583 2.532 2.483 2.436  
6 0.319 0.303 0.289 0.275 0.262 0.250 0.238 0.227 0.217 0.207 6 3.245 3.167 3.092 3.020 2.951 2.885 2.821 2.759 2.700 2.643  
7 0.263 0.249 0.235 0.222 0.210 0.198 0.188 0.178 0.168 0.159 7 3.508 3.416 3.327 3.242 3.161 3.083 3.009 2.937 2.868 2.802  
8 0.218 0.204 0.191 0.179 0.168 0.157 0.148 0.139 0.130 0.123 8 3.726 3.619 3.518 3.421 3.329 3.241 3.156 3.076 2.999 2.925  
9 0.180 0.167 0.155 0.144 0.134 0.125 0.116 0.108 0.101 0.094 9 3.905 3.786 3.673 3.566 3.463 3.366 3.273 3.184 3.100 3.019  
10 0.149 0.137 0.126 0.116 0.107 0.099 0.092 0.085 0.078 0.073 10 4.054 3.923 3.799 3.682 3.571 3.465 3.364 3.269 3.178 3.092  

 

Accounting homework help