Question
Cardo Ltd plans to manufacture a new product and the following information is applicable:Estimated sales for the year 20209500 units at R100 eachEstimated sales for
Cardo Ltd plans to manufacture a new product and the following information is applicable:Estimated sales for the year 20209500 units at R100 eachEstimated sales for the year 2020Direct materialR20 per unitDirect labourR6 per unitFactory overheads (all fixed)R45000 per annumSelling expenses15% of salesAdministrative expenses (all fixed)R27000 per annumRequired-Calculate the break-even quantity.-Calculate the break-even value.-Calculate the break-even value using the marginal income ratio.-Calculate the selling price per unit if the profit per unit is R3.If it was decided to increase fixed cost(admin exp) by 15% and direct material cost by R5, Calculate the amended:-Break-even quantity-Break-even value-Safety Margin-The number of units to be sold to achieve a profit of R340000
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