Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(20 Marks) QUESTION ONE INFORMATION Busta Limited plans to manufacture bar fridges and the following information is applicable: 5 000 units at R3 400 each

image text in transcribed

(20 Marks) QUESTION ONE INFORMATION Busta Limited plans to manufacture bar fridges and the following information is applicable: 5 000 units at R3 400 each Estimated sales for the year Estimated costs for the year: Variable costs Direct Material Direct Labour Variable Manufacturing Cost Selling expenses R520 per unit R350 per unit R110 per unit 6% of selling price per unit sold R625 000 Factory overheads (all fixed) Administrative expenses (all fixed) R462 000 REQUIRED: 1.1 Calculate the total net profit for the estimated figures. 1.2 Calculate the break-even quantity 1.3 Calculate the break-even value 1.4 Calculate the break-even value using the marginal income ratio. 1.5 Calculate the target sales volume to achieve a profit of R920 500.. 1.6 Calculate the new break-even quantity and value if the selling price is increased by 12% 1.7 Calculate the margin of safety in units at the original budgeted volume and price (3 marks) (3 marks) (2 marks) (3 marks) (3 marks) (4 marks) (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Quantitative Analysis Of Finance And Accounting (Vol. 4)

Authors: Lee Cheng Few

2nd Edition

9812700218, 9789812700216

More Books

Students also viewed these Accounting questions

Question

What are some suggestions of What-if Analysis in excel ?

Answered: 1 week ago

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago