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Answer each of the following questions independently. As far as possible use the expanded contribution margin model to prese your answers. in the selling price
Answer each of the following questions independently. As far as possible use the expanded contribution margin model to prese your answers. in the selling price with the expectation that this wour an idea? Motivate your answer with the relevant calculations 10%. Is this a good idea? Motival 2.6 Determine Lomax Ltd sells the bricks that it produces in pallets, with each pallet containing 500 bricks. The following budgeted information for 2022 is available. The number of pallets that are expected to be produced and sold during 2022 is 30000 . Each pallet is expected to be sold for R500. The direct materials cost per brick is R0.14 whilst the direct labour cost per brick is R0.08. R0.04 per brick goes towards variable manufacturing overheads. Fixed manufacturing overheads are expected to total R1 500000 . Annual advertising and salespersons salaries are estimated at R2 160000 . The salespersons are also entitled to a sales commission of 6%. Fixed administration costs are expected to be R3 840 000 whilst other administration costs are estimated at R40 per pallet sold. The management is examining various proposals to assist in decision-making for 2022
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