# Revision questions

#### Letty

I have been studying for a managerial accounting program and dug up some old papers.

They are a little tricky so I need help figuring out some concepts.

Question one
Zengazenga Enterprise management accountant is evaluating post sales, variable and fixed costs for four years performance. The fixed overheads of the company are assumed to be constant for the four years under review. The fixed overhead is K250, 000, selling price per unit is K45 and variable cost per unit is K20. The company actual profit is same as target profit of K75, 000 in year one. Calculate the breakeven point at targeted profit. (2 marks)

Question two
Zengazenga Enterprise management accountant in question one above has prepared the margin of safety for the four years as shown below:
Year
1
2
3
4
Margin of safety
20%
25%
30%
35%

Assuming that the breakeven point in year one is constant for all the three years
Calculate the total sales for all the four years (2 marks)

Question three
Zenga zenga Enterprise management accountant is planning to prepare a production budget for year one using the information of sales in question two as budgeted sales. The opening stock for year one is 20% of budgeted sales in year two and the closing stock is 15% of budgeted sales in year one. Prepare the production budget for year one (2 marks)

#### kirby

VIP Member
This belongs in the Exams and Studying forum after you have read and followed the policies there

#### Letty

Oh thank you for that