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Question 4a
Formulae & Tables
ACCA PM (F5) Formulae Sheet
You will get this Formula Table at the exam so learn well how to apply it in your ACCA PM (F5) Exam
Cardio Co manufactures three types of fitness equipment: treadmills (T), cross trainers (C) and rowing machines (R). The budgeted sales prices and volumes for the next year are as follows:
The standard cost card for each product is shown below.
T | C | R | |
---|---|---|---|
Selling price | $1,600 | $1,800 | $1,400 |
Units | 420 | 400 | 380 |
T | C | R | |
---|---|---|---|
$ | $ | $ | |
Material | 430 | 500 | 360 |
Labour | 220 | 240 | 190 |
Variable overheads | 110 | 120 | 95 |
Labour costs are 60% fixed and 40% variable. General fixed overheads excluding any fixed labour costs are expected to be $55,000 for the next year.
Required:
(a) Calculate the weighted average contribution to sales ratio for Cardio Co. (4 marks)