Use the information provided below to answer each of the following questions independently. 2.1 Calculate the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the information provided below to answer each of the following questions independently. 2.1 Calculate the break-even quantity. (2 Marks) 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. (4 Marks) 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks) INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: R100 000 10% of sales Fixed marketing and administrative costs Sales commission Use the information provided below to answer each of the following questions independently. 2.1 Calculate the break-even quantity. (2 Marks) 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. (4 Marks) 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks) INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: R100 000 10% of sales Fixed marketing and administrative costs Sales commission
Expert Answer:
Answer rating: 100% (QA)
answers 1 Selling Price per unit R200 We know Marginal Income or Contribution margin per unit Sellin... View the full answer
Related Book For
Fundamental Accounting Principles Volume II
ISBN: 978-1259066511
14th Canadian Edition
Authors: Larson Kermit, Jensen Tilly
Posted Date:
Students also viewed these accounting questions
-
Answer each of the following questions using economic theory covered in this lesson. See the table below, and answer each of the questions. a. If the market represented in exhibit above is allowed to...
-
Answer each of the following questions about zero-base budgeting: (a) What is the reasoning behind the choice of the name zero base? (b) The zero-base approach asserts that for each budgeted...
-
Use the information provided below to answer the following questions. Other information: ¢ All of the shares were issued during the first year of operations (year ended October 31, 2013). ¢...
-
On October 1, 2017, Sharp Company (based in Denver, Colorado) entered into a forward contract to sell 100,000 rubles in four months (on January 31, 2018) and receive $39,000 in U.S. dollars. Exchange...
-
The following schedule shows all the accounts of Fresno Travel Agency that received year-end adjusting entries: Required: 1. Calculate the missing amounts identified by the numbers (a) through (e)....
-
Discuss how career-related myths can inhibit career planning and growth.
-
Which of the following statements concerning internal control procedures for merchandise sales is not correct? a. A sale and its associated receivable are recorded only when the order, shipping, and...
-
Hetrick Dentistry Services operates in a large metropolitan area. Currently, Hetrick has its own dental laboratory to produce porcelain and gold crowns. The unit costs to produce the crowns are as...
-
Consider the onetoonefunction. ()=2 / (35) Determine the inverse function of. 1()=?
-
On January 1, 2021, Acme Co. is considering purchasing a 40 percent ownership interest in PHC Co., a privately held enterprise, for $700,000. PHC predicts its profit will be $185,000 in 2021,...
-
Workwear Station uses a markup on cost of 5 5 % to establish its retail prices. This pricing rule builds in a profit of 2 2 % of cost . What rate of markdown can Workwear Station offer and just break...
-
Elvis was cruising down Main Street in his convertible car when he accidently ran a red light and crashed his car into a passing motorist. Elvis' car then hit a light post. Use the following...
-
What is the amount of sensible heat (in Btu) generated from students in each hour? Assume the average heat release rate from each person is 55 W. Use a conversion factor, 1W=3.41 Btu/h
-
Becker Corporation has budgeted for the following costs for the next fiscal year Directmaterials$1,390,000 Directlabor840,000 Manufacturing overhead Variable750,000 Fixed840,000 Selling and...
-
What are the implications of digitalization and virtualization on leadership styles and interpersonal dynamics, and how do leaders adapt their communication and decision-making strategies to thrive...
-
Give the order of magnitude () for the following algorithm. Explain why your answer is correct. GET VALUES for A1, A2, ..., An, and B, B2, ..., Ba Get value of n /* set i equal to 1 */ /* for each of...
-
Make to Knowledge techniques fully integrate customer's demand information into your organizations system True False
-
Use multiplication or division of power series to find the first three nonzero terms in the Maclaurin series for each function. y = e x2 cos x
-
On January 1, Star Corp. had 50,000 common shares issued and outstanding. On April 1, it issued 4,000 additional shares and on June 5, declared and distributed a two-for-one share split. Calculate...
-
Mahalo Inc. has a July 31 year-end. It showed the following partial amortization schedules regarding two bond issues: Bond Issue A Bond Issue B Required Answer the following for each bond issue: a....
-
Velor Ltd. showed the following adjusted information on August 31, 2014, its second year-end: a. Prepare the appropriate closing entries. b. Prepare a statement of changes in equity for the year...
-
Erin Danielle, the accountant for Bloomington Company, has been trying to get the balance sheet to balance. The company's balance sheet is as follows. Instructions Explain to Erin Danielle in a memo...
-
Presented below is a series of accounts. Indicate whether these accounts generally will have (a) debit entries only, (b) credit entries only, (c) both debit and credit entries. (1) Cash. >^- (2)...
-
What are the advantages of using the journal in the recording process?
Study smarter with the SolutionInn App