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3 . 8 . 9 . 2 0 2 4 LanuaryFebruary 2 0 % in the month of sale, and these debtors receive a 5

3.8.9.2024LanuaryFebruary20% in the month of sale, and these debtors receive a 5% discOunt.47000The selling pice is R20 per unit (excluding any discounts) Al the goods produced each month areexpected to be sold in the same month. Socty percent (60%) of the sales is expected to be on credit andthe balance is for cash. Thirty percent (30%) of the cash sales is subject to a discount of 10%.Credit sales are usually collected as follows:3100075% in the month after the sale, and the rest is uSually writen off as bad debs.Manufacturing overheads are paid monthly. The overtheads are expected to amount to R65000 forDecember 2023, including R5000 for depreciation. Manufacturing overheads are expected to increaseby 5% each month.per unit are expected to increase by 9% with effect from 01 February 2024.Labour Costs amoOunt to R6 per unit and are paid in the month in which they are incurred. Labour costsMaterials cost R7 per unit (excluding any discounts). All the materials are purchased for cash to takeadvantage of a discount of 7.5%.R200000 is expected to be invested in a foxed deposit account on 01 February 2024. Interest at 9%per annum is receivable monthly, commencing February 2024,Selling and administrative costs are paid monthly and are expected to total R56000 for February 2024,after an increase of 12% takes place on 01 February 2024.
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