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13 marksCost-Volume-Profit (CVP) Analysis

CAPE Accounting Unit 2 · 2022 · Paper 2 · Question 3(a)(ii)

Lagoon Ltd manufactures two products with limited machine hours available and incurs fixed costs.

Using limiting factor analysis, calculate the optimum total contribution margin for Lagoon Ltd, showing all working.

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Other parts of this question

  1. 3(a)(i)State TWO assumptions of breakeven analysis.[2 marks]
  2. 3(b)State TWO functions of the budget committee within an organization.[2 marks]
  3. 3(c)(i)Prepare the cash collections schedule.[4 marks]
  4. 3(c)(ii)Prepare the cash disbursement schedule for purchases.[5 marks]
  5. 3(c)(iii)Prepare the cash budget for January and February 2020.[9 marks]

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