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Determine the selling price per unit that will enable the company to achieve an operating profit of R1 602 000. (5 marks) INFORMATION Sinclair Limited

Determine the selling price per unit that will enable the company to achieve an operating profit of R1 602 000. (5 marks) INFORMATION Sinclair Limited is analysing whether its new product will be profitable. The following data, based on expected sales of 4 000 units, is provided for analysis: Selling price per unit R1 620 Direct materials cost per unit R350 Direct labour cost per unit R250 Variable overheads cost per unit R102 Fixed manufacturing overheads cost R1 000 000 Sales commission (as a percentage of the selling price) 10% Fixed administrative and selling costs R738 800

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