Question
3.1. Calculate the operating profit/loss at the end of the first six months of operations. (5 marks) 3.2. Calculate the break-even value per month during
3.1. Calculate the operating profit/loss at the end of the first six months of operations. (5 marks) 3.2. Calculate the break-even value per month during the first six months of operations. (5 marks) 3.3. Calculate the total Operating profit/loss per month, if Proposal 1 is implemented. (5 marks) 3.4. How many liters of petrol need to be sold to achieve an operating profit of R301 625 each month, if Proposal 2 is accepted? (5 marks) 3.5. Calculate the reduction in monthly fixed costs that is necessary to yield a profit of R300000, if Proposal 3 is accepted. (5 marks)
QUESTION3 [25 Marks] INFORMATION An entrepreneur recently opened a filling station. Diesol is sold at R15 per liter and the variable costs total R12 per liter. The fixed costs per month are R270 000 . After six months of trading, the sales achieved were 1080000 liters and the sales volume has remained at the same level each month. In an attempt to improve performance, the entrepreneur is considering the following proposals: Proposal 3 The poss bilty of only operating from 06.00 to 20.00 is being cons dered. This oafler cosing tine is expected to result in a ioss in sales of 25 000 litres on average per month it is noped that the saving in fixed costs resulting from the reduetlen in operating fiours wilf onable the entrepreneur to acheve an average monthi piofiti of at least R300000Step by Step Solution
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