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ABC Company is a manufacturer of widgets. The company has provided the following financial information for the year 2 0 2 3 : Selling Price
ABC Company is a manufacturer of widgets. The company has provided the following financial information for the year :
Selling Price per Widget R
Direct Materials per Widget R
Direct Labour per Widget R
Variable overheads per Widget R
Fixed cost R
Expected sales for widgets
Required:
Calculate the following breakeven and profitrelated metrics, providing both the formula and the calculation:
Breakeven Quantity in units Marks
Breakeven Value in rands Marks
Margin of Safety in rands and percentage Marks
Number of Sales Units Required to Achieve a Profit of R Marks
Calculate the new breakeven quantity if the selling price increases to R while other factors remain the same.
Marks
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