Question
Calculate the following from the information provided below: 3.1.1 Break-even value using the marginal income ratio (4 marks) 3.1.2 Margin of safety (in units) (4
Calculate the following from the information provided below:
3.1.1 Break-even value using the marginal income ratio (4 marks)
3.1.2 Margin of safety (in units) (4 marks)
3.1.3 Break-even quantity if a sales commission of 20% is introduced. (4 marks)
INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the management accountant: Sales at R250 per unit R1 000 000 Variable costs R600 000 Fixed manufacturing, administrative and marketing costs R250 000
All the units produced are expected to be sold
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