Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ESTIMATED SALES 2000 UNITS, SELLING PRICE R800, VARIABLE MANUFACTURING COST PER UNIT R420, VARIABLE MANUFACTURING COST SALES COMMISSION R60, FIXED MANUFACTURING OVERHEAD R330 000, FIXED

ESTIMATED SALES 2000 UNITS, SELLING PRICE R800, VARIABLE MANUFACTURING COST PER UNIT R420, VARIABLE MANUFACTURING COST SALES COMMISSION R60, FIXED MANUFACTURING OVERHEAD R330 000, FIXED ADMINISTRATION EXPENSES R150 000. CALCULATE EXPECTED TOTAL MARGINAL INCOME AND NET PROFIT/LOSS. CALCULATE BREAK-EVEN QUANTITY. CALCULATE BREAK-EVEN VALUE, IF THE FIXED COST ARE 10% GREATER THAN ANTICIPATED. CALCULATE THE NUMBER UNITS REQUIRED TO BREAK-EVEN IF THE SELLING PRICE IS REDUCED BY R40 & SALES COMMISSION IS CALCULATED AT 10% OF THE SELLING PRICE. SUPPOSED JEENA MANUFACTURING WANT TO MAKE A PROVISION FOR AN INCREASE IN ADVERTISING BY R30 000 & A DROP IN THE SELLING PRICE BY R100 PER UNIT WITH THE EXPECTATION THAT SALES WILL INCREASE BY 400 UNITS,WILL PROFITABILITY IMPROVE? MOTIVATE THE ANSWER WITH RELEVANT CALCULATIONS

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

Financial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

5th Edition

9781118560952, 1118560957, 978-0470239803

More Books

Students also viewed these Accounting questions