Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

hi please assist MANCOSA: BACHELOR OF BUSINESS ADMINISTRATION HONOURS 59 (20) QUESTION 4 Exxarro Llimited is considering pricing and costing for the year ahead. The

hi please assist
image text in transcribed
MANCOSA: BACHELOR OF BUSINESS ADMINISTRATION HONOURS 59 (20) QUESTION 4 Exxarro Llimited is considering pricing and costing for the year ahead. The following data based on expected production and sales of 15 000 units are provided for analysis: Variable manufacturing cost R1 185 000 Fixed manufacturing cost R510 000 Sales commission R5 per unit sold Fixed administration cost R130 000 Sales R210 per unit Study the information provided above and answer the following questions independently: 4.1 Calculate the break-even sales value. (5) 4.2 Calculate the sales volume required to achieve a profit of R 800 000. (5) 4.3 Suppose Exxaro Limited is considering a decrease of 10% per unit in the selling price of the product with the expectation that it would increase sales volume by 10%. Is this a good idea? Motivate your 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_2

Step: 3

blur-text-image_3

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

Accounting A Smart Approach

Authors: Mary Carey, Cathy Knowles

4th Edition

0198844808, 9780198844808

More Books

Students also viewed these Accounting questions

Question

Review secondary sources to get an overview of your topic.

Answered: 1 week ago