Managerial Accounting

Question 1
Supermarkets sales for the year 2011, 2012 and 2013 are as follows:
(All amounts in RO)
Sections 2011 2012 2013
Groceries 62,500 67,500 65,300
Vegitables 22,000 24,200 21,000
Medicines 18,800 17,500 16,500
Textiles 45,300 53,600 61,200
Novelties 2,400 3,300 2,100
TOTAL 151,000 166,100 166,100

Workings:
In 2011, total sales excluding textiles is RO 105,700
So, 105,700 + Textile sales = Total sales
105,700 + 0.3 total sales = Total sales
0.7 total sales = 105,700
Total sales = 105,700 / 0.7 = 151,000

In 2012, total sales = 151,000 + 10 % = 166,100

Groceries sales = 62,500 + 8 % = 67,500
Vegetables sales = 22,000 + 10% = 24,200
Medicine sales = 18,800 – 1300 = 17,500
Novelties sales = 166,100 – 67,500 – 24,200 – 17,500 – 53,600 = 3,300

In 2013,
Groceries sales = 67,500 -2,200 = 65,300
Vegetables sales = 24,200 – 3,200 = 21,000
Medicine sales = 17,500 – 1,000 = 16,500
Novelties sales = 3,300 – 1,200 = 2,100
Textile Sales = 166,100 – 65,300 – 21,000 – 16,500 – 2,100
i) Total Sales for the year 2011 is RO 151,000
ii) Novelties sales in 2012 increase at 37.5% from its 2011 sales.
 Question 2
i) Liner equation of Total cost as follows:
y = 200 + 2x
Where y = total cost and x = no. of units produced
ii) Assume value of x as 100, 200, 300, 400 and 500
Total cost y shall be as below:
where x = 100, y = 200 + 2x = 200 + 2*100 = 400,
where x = 200, y = 200 + 2x = 200 + 2*200 = 600,
where x = 300, y = 200 + 2x = 200 + 2*300 = 800,
where x = 400, y = 200 + 2x = 200 + 2*400 = 1,000,
where x = 500, y = 200 + 2x = 200 + 2*500 = 1,200

1400

1200

1000

800
Total cost

600

400

200

0
0 100 200 300 400 500 600

Units of production

x axis shows units of production where y axis shows total cost.

iii) In the above graph, it shows that when 200 no. of unites are produced, total
cost is RO 600.
Question 3

Following are sales (in no. of units) of XYZ co. for six months from January to June 2014:

Month Sales
Jan 200
Feb 400
Mar 800
Apr 500
May 600
Jun 400

Following is bar graph of the above data where x axis shows months during 2014 and y
axis shows no. of units sales during the year 2014:
900

800

700

600
Sales units

500

400

300

200

100

0
Jan Feb Mar Apr May Jun