AMD Ltd Case Study - Report Writing - Accounting and Finance Assignment Help

Assignment Task

Question 1

AMD Ltd manufactures a single product in a factory that is capable of producing 200,000 units per year. A budgeted Income Statement for the current year is shown below. 

Required:

(a) Calculate the Contribution Margin per unit.
(b) Calculate the breakeven point in units and sales revenue. 

(c) If the company wants to achieve a $300,000 Net Profit Before Tax (NPBT), how many units must be sold?                      
(d) Calculate the budgeted sales units and total revenue if management wants a $270,000 Net Profit After Tax (NPAT) (Tax at 25% of profit).
(e) The production manager has recommended an upgrade to existing Plant and Machinery at a cost of $1,000,000. This would decrease Variable Manufacturing Costs by $1 per unit and increase annual fixed costs by $154,000pa. What would be the new breakeven point in units?
(f) Calculate the sales units and total revenue required if the company is to make a Net Profit After Tax, that gives a return of 15% on Sales. Assuming the upgrade to existing Plant and Machinery is NOT undertaken.
(g) Reconstruct an Income Statement, proving (f) above is correct. 
Question 2        

Red Rock Ltd is a public company with a share capital consisting of fully paid ordinary shares. In 2020 the company financed its expansion by using external debt funds (Bank borrowings).  Working capital is financed by a flexible bank overdraft. 

Use the template on the following pages to complete this question.

In each ratio category you should:

A: State whether the ratios have improved or weakened.
B: Explain what may have caused the changes over the 3 years.
C: Describe possible actions that could be taken to improve the results in the
category?

Liquidity

(Circle one answer)
A: This category of measures has IMPROVED/WEAKENED over time. 

B: Possible cause of the changes:

C: Suggested action to improve the result in future:

Activity/Efficiency

 (Circle one answer)
A: This category of measures has IMPROVED / WEAKENED over time. 

B: Possible cause of the changes:

C: Suggested action to improve the result in future:
Profitability

 (Circle one answer)
A: This category of measures has IMPROVED / WEAKENED over time. 

B: Possible cause of the changes:

C: Suggested action to improve the result in future:
Long-term Security

(Circle one answer)
A: This category of measures has IMPROVED / WEAKENED over time. 
B: Possible cause of the changes:

C: Suggested action to improve the result in future:
Market Performance

(Circle one answer)
A: This category of measures has IMPROVED / WEAKENED over time. 
B: Possible cause of the changes:
C: Suggested action to improve the result in future:

This Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.