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 | |||||||||||||||||||