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Bears (Pty) Ltd manufactures a standard type of wooden table. The following are the budgeted costs for the table: . Raw materials used: .
Bears (Pty) Ltd manufactures a standard type of wooden table. The following are the budgeted costs for the table: . Raw materials used: . Direct labour: Supervisor's salary: . Rental of factory: Water and electricity: Carriage on sales: Marketing manager's commission: Advertising costs: Bolts and nuts: Telephone: Manager's salary: R800 per unit produced R250 per unit produced R3 600 per mo R5 500 per month R1 000 per month R80 per unit sold R300 per unit sold R900 per month RSO per unit produced R250 per month R985 per month se business intends to sell the wooden tables at R3 450 each plus VAT @ 14% 2.1 Explain the difference between product cost and period cost and give three (3) (7) examples of each cost from the costs above. 2.2 Calculate variable cost per unit produced. (6) 2.3 Calculate fixed cost for the month. (7) 1.4 calculate the contribution margin per unit sold. (2) 5 Calculate the break-even point in Rends (3) .. How many units of the table need to be sold in order to make a net profit after tax of R15 555? Assume a flat tax rate of 28% for companies (5)
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