Question
Dear Tutor, can you please help to Calculate the sales value required to break even. Calculate the margin of safety (as a percentage) for 2018.
Dear Tutor, can you please help to
Calculate the sales value required to break even.
Calculate the margin of safety (as a percentage) for 2018.
Determine the sales volume required to achieve an operating profit of R1 200 000.
Suppose Tiffany Ltd is considering a R20 per unit decrease in the selling price of the product, with the expectation that this would increase annual sales by 25%.Calculate the total Contribution Margin and Operating Profit/Loss.
Determine the variable costs per unit that would enable Tiffany Ltd to break even, if 28 500 units are produced and sold?
INFORMATION
Tiffany Ltd produces a single product.The following budgeted information for 2018 is available:
Selling price per unit R400
Expected sales volume 28 000 units
Fixed manufacturing costs per year R960 000
Variable manufacturing costs per unit R152
Marketing costs:
Advertising and salaries per year R1 296 000
Sales commission 6% of selling price
Administration costs:
Salaries and other fixed costs per year R2 304 000
Variable costs R24 per unit sold
Thanks
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