Additional Information

Tyre Magnificent (a fictitious company manufactures a wide range of tyres for normal consumer vehicles (sedan's, sports cars etc.), 4x 4 vehicles as well as for tractors. Review the following information: 5 Price and cost information: 4 x 4 tyres Sedan Tyres Selling Price R 2 200 Direct Manufacturing Cost R 1100 Tractor tyres R 5 500 R 2 800 R R 3 500 2 400 Total Sales and other operational information for a one-year period: Tractor Sedan Tyres 4 x 4 tyres tyres Number of products sold 220 000 90 000 20 000 Number of employees 300 120 40 180 70 30 Factory space used 330 000 460 280 Total indirect expenses: Manufacturing overheads R Head office expenses R Sales and marketing R expenses 8 200 000 5 200 000 6 500 000 Manufacturing Overheads are allocated to the three product 7: areas based on Factory Space used. Head Office Expenses are allocated to the three product areas based on the Number of Employees Sales and Marketing Expenses ar allocated to the three product areas based on the Number of Products Sold -es are: The net margin for tractor tyres are: O a. 47,5% O b. R52 275 315 O c. 49,1% O d. R 54 000 000