Tye runs a business which sells a magazine. He has worked out the following figures for the magazine he is going to sell. He estimates that they can sell 20,000 magazines a year, with a selling price of £3.50 each. He expects the business' fixed costs to be £5 000 per annum with annual rent to be a further £6,000. Raw materials and staff wages to produce all the magazines will cost £30 000 per annum. Past paper: (d) Discuss how useful knowing the margin of safety will be to Tye in running his business. 6 marks sapety ? dent fy mhe adramtages and discadvantagKs f calculata why do we calculato Vhe margin of margin of safety

Tye runs a business which sells a magazine. He has worked out the following figures for the magazine he is going to sell. He estimates that they can sell 20,000 magazines a year, with a selling price of £3.50 each. He expects the business' fixed costs to be £5 000 per annum with annual rent to be a further £6,000. Raw materials and staff wages to produce all the magazines will cost £30 000 per annum. Past paper: (d) Discuss how useful knowing the margin of safety will be to Tye in running his business. 6 marks sapety ? dent fy mhe adramtages and discadvantagKs f calculata why do we calculato Vhe margin of margin of safety

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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