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Management Accounting Problem -Budget Projection. Show all your workings for the calculations

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Management Accounting..jpg

“the management of a buslness ls oonoemed about Its Inability to obtain enough fully trahed
tabourtoenablettto meetitspresenttmdget prejectbnforflsfltreeservlcesmpha, Betaand
Gamma. Alpha Beta Garrmra Total' £000 £000 £000 £000
Variable costs
Matertats 6 4 5 15
Label: 9 6 12 27
Expenses 3 2 2 'r'
Allocated fixed costs _6 E E g
Total cost 24 27 31 82
From E _2 _2 a
Sales revenue g a g m The arnomt of labour llkely to be avallable amounts to £20,000. All of the variable labour ls
pald at the same hourty rate. You have been asked to prepare a statement of plans ensurtng thatat least 50 peroentot'the budgeted sales revemesareachlevedforeach service, and the
balance of labour ls used to produce the greatest proflt. Requlred:
(a) Prepare a statement, with explanations, showlng the greatest proflt available from the Ilmlted amount of sltllled labour avallable. wllhln the constralnt stated. Hm: Remember that
all labour ls pald at the same rate.
(b) What steps could the buslness take In an attempt to knprove profitablllty, In the llght ot the labour shortage?

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Budget Projection.edited.docx

Running head: BUDGET PROJECTION Budget Projection
Students Name
Institutional Affiliation 1 BUDGET PROJECTION 2
Cost Volume Profit Analysis The first step is to calculate the contribution margin...

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