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kyflora

Accounting

kyflora.org is a growing and renowned brand in the field of online gardening solution provider. Rooftop

gardening is one of its popular products. Cost and sales data of rooftop gardening are given below:

 

Variable cosrs: Fixed Costs (per month) :

Fruit Plants 320 Office Rent 25000

Flower Plants 480 Factory Rent 45000

Beautification Plants 430 Salary 145000

Vegetable plants 200 Promotional activity 30000

Soil 200 Depreciation - Pickup Van 20000

Tub 360

Drum 240

Medicine and others 110

Total variable cost 2340 Total Fixed cost 265000

 

Other information:

Selling price : 4500

Daily sales 15

 

Requirement:

 

I Generate contribution format incomestatement showing total, per unit and percentage column.

II Calcualte break-even point in terms of taka sales and sales in units.

III Draw break-even graph showing all the relevant information.

IV Identify sales of the company assuming target profit of 500000 taka per month.

V What is the margin of safety in sales and percentage at current level of sales

VI Calculate degree of operating leverage (DOL) and explain its significance

VII Recently price of the vegetable platns has increased by 25% and Drum cost has gone up by 30%.

On the other hand office rent has gone down by 20%, due to effect of covid - 19. Considering ghe

changes, reconstruct income satement of the company.

VIII Refer to changes in VII and calculate break-even point of the company.

 

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