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2.1 Illustrate, with the help of a diagram, the CVP model. (10) 2.2 Petes hot-dog factory has a fixed cost of R500 per month and
2.1 Illustrate, with the help of a diagram, the CVP model. (10) 2.2 Petes hot-dog factory has a fixed cost of R500 per month and each unit (hot-dog) has a variable production cost of R1.70. Each unit sells for R2.50. Calculate: 2.2.1 Break-even volume per month. (4) 2.2.2 The total profit (or loss) made per month when the following number of units are sold: (i) 450 units (5) (ii) 1000 units (5) 2.3 The increase in profits if the monthly sales of 1000 units is increased by 12%. (7)
2.1 Illustrate, with the help of a diagram, the CVP model. 2.2 Pete's hot-dog factory has a fixed cost of R500 per month and each unit (hot-dog) has a variable production cost of R1.70. Each unit sells for R2.50. Calculate: 2.2.1 Break-even volume per month. 2.2.2 The total profit (or loss) made per month when the following number of units are sold: (i) 450 units (ii) 1000 units 2.3 The increase in profits if the monthly sales of 1000 units is increased by 12%. [31]Step by Step Solution
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