Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

c Bears (Pty) Ltd manufactures a standard type of wooden table. The following are the budgeted costs for the table: . Raw materials used: R800

c
image text in transcribed
Bears (Pty) Ltd manufactures a standard type of wooden table. The following are the budgeted costs for the table: . Raw materials used: R800 per unit produced Direct labour: R250 per unit produced . Supervisor's salary: R600 er month Rental of factory: RS 500 per month Water and electricity: R1 000 per month Carriage on sales: RBD per unit sold Marketing manager's commission: R300 per unit sold Advertising costs: R900 per month Bolts and nuts R50 per unit produced Telephone: R250 per month Manager's salary. R985 per month e business intends to sell the wooden tables at R3 450 each plus VAT @ 14%. 21 (7) Explain the difference between product cost and period cost and give three (3) 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 14 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 (5) of R15 555? Assume a flat tax rate of 28% for companies Bears (Pty) Ltd manufactures a standard type of wooden table. The following are the budgeted costs for the table: . Raw materials used: R800 per unit produced Direct labour: R250 per unit produced . Supervisor's salary: R600 er month Rental of factory: RS 500 per month Water and electricity: R1 000 per month Carriage on sales: RBD per unit sold Marketing manager's commission: R300 per unit sold Advertising costs: R900 per month Bolts and nuts R50 per unit produced Telephone: R250 per month Manager's salary. R985 per month e business intends to sell the wooden tables at R3 450 each plus VAT @ 14%. 21 (7) Explain the difference between product cost and period cost and give three (3) 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 14 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 (5) of R15 555? Assume a flat tax rate of 28% for companies

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Futures And Options Markets

Authors: John C. Hull

7th Edition

0136103227, 9780136103226

More Books

Students also viewed these Finance questions

Question

Interact with others without being asked what country you are from?

Answered: 1 week ago