Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to calculate the following: 3.1.1 Break-even quantity 3.1.2 Margin of safety (in units) 3.1.3 Total Marginal Income and Net Profit/Loss, if 90% of the books are sold. INFORMATION Lucida Printers manufactures counter books. The following information was extracted from the budget for the year ended 31 May 2022: Sales Selling price per unit Variable manufacturing costs per unit Variable marketing costs per unit Fixed manufacturing overhead costs Fixed marketing and administration costs 60 000 units R50 R15 R10 R400 000 (4 marks) (3 marks) (4 marks) R200 000 3.2 Calculate the following from the information provided below: 3.2.1 The selling price per unit that will enable the company to break even. 3.2.2 The number of units that must be sold to earn a net profit of R1 196 800 if the selling price increases by R36 per unit and the variable costs increase by 10%. INFORMATION The following information was provided by Sabrina Limited for the only product that it manufactures: Fixed costs per annum Variable costs per unit Selling price per unit Expected sales R1 788 000 R320 R680 10 000 units (4 marks) (5 marks) Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to calculate the following: 3.1.1 Break-even quantity 3.1.2 Margin of safety (in units) 3.1.3 Total Marginal Income and Net Profit/Loss, if 90% of the books are sold. INFORMATION Lucida Printers manufactures counter books. The following information was extracted from the budget for the year ended 31 May 2022: Sales Selling price per unit Variable manufacturing costs per unit Variable marketing costs per unit Fixed manufacturing overhead costs Fixed marketing and administration costs 60 000 units R50 R15 R10 R400 000 (4 marks) (3 marks) (4 marks) R200 000 3.2 Calculate the following from the information provided below: 3.2.1 The selling price per unit that will enable the company to break even. 3.2.2 The number of units that must be sold to earn a net profit of R1 196 800 if the selling price increases by R36 per unit and the variable costs increase by 10%. INFORMATION The following information was provided by Sabrina Limited for the only product that it manufactures: Fixed costs per annum Variable costs per unit Selling price per unit Expected sales R1 788 000 R320 R680 10 000 units (4 marks) (5 marks)
Expert Answer:
Answer rating: 100% (QA)
The company sold 10 000 units of its product last year at a selling price of R680 per unit It experi... View the full answer
Related Book For
Business Math
ISBN: 978-0133011203
10th edition
Authors: Cheryl Cleaves, Margie Hobbs, Jeffrey Noble
Posted Date:
Students also viewed these accounting questions
-
Jamie Lee Jackson, age 26, is in her last semester of college and is anxiously waiting for graduation day that is just around the corner! She still works part-time as a bakery clerk, has been...
-
Your cousin is in her last year of high school and is in the process of deciding which university to attend. Since you went through the process just a few years ago she has asked you to advise her on...
-
Jamie Lee Jackson, age 26, is in her last semester of college and is waiting for graduation day that is just around the corner! It is the time of year again when Jamie Lee must file her annual...
-
Consider the Cobb-Douglas production function f(x, y) = 300x0.85, 0.15 When x = 4000 and y = 800, find the following. (Round your answers to two decimal places.) (a) the marginal productivity of...
-
A company that is uncertain about the exact date when it will pay or receive a foreign currency may try to negotiate with its bank a forward contract that specifies a period during which delivery can...
-
Wholesome Foods Inc. (WFI), projects unit sales for its new Organic Trail Mix, as follows: Year Unit Sales 70,000 100,000 3 110,000 4 100,000 65,000 Production of the trail mix will require $5...
-
What is the difference between fees and costs?
-
Suppose Ritter Brothers purchases $400,000 of 5% annual bonds of Clarkson 1. Corporation at face value on January 1, 2016. These bonds pay interest on June 30 and December 31 each year. They mature...
-
Rooney Co acquired 7 0 % of 1 0 0 , 0 0 0 $ 1 equity share capital of Marek Co , its only subsidiary on 1 January 2 0 X 6 for $ 2 5 2 , 0 0 0 when the retained earnings of Marek was $ 2 5 0 , 0 0 0 ....
-
A store maintains data on customers, products and purchase records in three tables: CUSTOMER, PRODUCT, PURCHASE. The store manager wants to know which product is on its maximum discount for each...
-
The DoD model (also called the TCP/IP stack) has four layers. Which layer of the DoD model is equivalent to the Network layer of the OSI model? A.Application B.Host-to-Host C.Internet D.Network Access
-
The analysis performed by Sardar on the Purity Fund can be best described as being based on: A. a holdings-based approach. B. manager self-identification. C. a returns-based style analysis. Jack...
-
The arrival cost for purchasing the 90,000 shares of BYYP is: A. 164.4 bp. B. 227.2 bp. C. 355.0 bp. Robert Harding is a portfolio manager at ValleyRise, a hedge fund based in the United States....
-
Based upon Deweys chosen investment process for the management of the Purity Fund, rebalancing of the fund will most likely occur: A. at regular intervals. B. in response to changes in...
-
As it relates to the trade policy document, ValleyRise should implement Yellows recommendation related to: A. the list of eligible brokers. B. a policy for the treatment of trade errors. C. a policy...
-
Given her investment goals and market view, and assuming all options are based on SEK/CHF, the best strategy for Bjrk to manage the funds CHF exposure would be to buy an: A. ATM call option. B. ITM...
-
Accounts Debit Credit Cash $24,100 Accounts Receivable 5,500 Supplies 3,400 Land 53,000 Accounts Payable $3,500 Common Stock 68,000 Retained Earnings 14,500 Totals $86,000 $86,000 During January...
-
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each....
-
Subtract. Borrow when necessary. Reduce the difference to lowest terms (simplify). 12 - 4 1/8
-
Because the entries in the present value table (Table 13 - 3) are reciprocals of the corresponding entries in the future value table (Table 13 - 1), how can Table 13 - 3 be used to find the future...
-
Rob McNab ordered 18.3 square meters of carpet for his halls, 123.5 square meters for the bedrooms, 28.7 square meters for the family room, and 12.9 square meters for the playroom. Find the total...
-
Why do free trade areas develop rules of origin?
-
How does the WTO differ from the GATT?
-
What was the goal of the Treaty of Rome?
Study smarter with the SolutionInn App