Raw materials

R 210 per unit

Direct labour

R 110 per unit

Factory foreman's salary

R 2500 per month

Rental of factory

R 3400 per month

Rates and taxes

R 1000 per month

Sales representatives' commission

R 100 per unit

Advertising costs

R 840 per month

Indirect materials

R 45 per unit

Insurance premium on factory

R 965 per month

Quality controller's salary

R 220 per month

Transport for raw materials

R 100 per batch of raw materials needed to produce ten doors

Selling price

R 900 per unit

2.1 Calculate the variable cost per unit. (2)

2.2 Calculate the total fixed cost per month. (2)

2.3 Calculate the marginal income per unit. (2)

2.4 Calculate the break-even point in units (3)

2.5 Calculate the break-even point in Rand value (2)

2.6 Draw a CVP graph that illustrates the CVP-analysis of this product. (22)

Answer rating: 100% (QA)

21 Calculate the variable cost per unit To calculate the variable cost per unit we need to sum up the costs that vary with the number of units produced In this case the variable costs per unit are Raw ... View the full answer