Question
Anglico's most recent income statement is given below. Sales (8,000 units)R160,000 Less variable expenses (68,000) Contribution margin 92,000 Less fixed expenses (50,000) Net income R42,000
Anglico's most recent income statement is given below.
Sales (8,000 units)R160,000
Less variable expenses (68,000)
Contribution margin 92,000
Less fixed expenses (50,000)
Net income R42,000
Required:
a. Contribution margin per unit is R ________per unit (3)
b. If sales are doubled total variable costs will equal R ________
(3)
c. If sales are doubled total fixed costs will equal R ________
(1)
d. If 20 more units are sold, profits will increase by R ________(3)
e. Compute how many units must be sold to break even. ________
(3)
f. Compute how many units must be sold to achieve
operating income of R60,000. ________
(4)
g. Compute the revenue needed to achieve an after tax
income of R30,000 given a tax rate of 30%.
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