Question
A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit
A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distrivution costs R230 400 Sales commission 5% of selling price Sales 90 000 units Required 1. Calculate the break-even point in units (2 marks) 2. Calculate the breakeven point in rands (2 marks) 3. Calculate the percentage by which the budgeted sales can fall before The company begins to make a loss(4 marks) 4. The marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising calculate the revised breakeven point based on the marketing managers suggestion(7 Marks
kindly solve sub-part 4 only
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