Question
INFORMATION Marie Manufacturers plans to start Project Marie and the following information is applicable to the project for the first financial year: Estimated sales for
INFORMATION Marie Manufacturers plans to start Project Marie and the following information is applicable to the project for the first financial year:
Estimated sales for the financial year 3 500 units
Selling price per unit R4 000
Variable manufacturing costs per unit R2 700
Fixed manufacturing overheads R1 400 000
Fixed selling and administrative expenses R600 000
Variable selling and administrative expenses per unit R300
REQUIRED Use the information provided below to calculate the following: 4.1 Calculate Break-even quantity (6 marks) 4.2 Calculate Break-even value (3 marks) 4.3 Calculate the Expected total Marginal income and Net profit/loss. (5 marks) Answer each of the following questions independently: (5 marks) Calculate the number units required to break-even if: 4.4 1. the selling price is reduced by R400, and 2. variable selling and administrative expenses are adjusted to 8% of sales. Answer each question independently (6 marks) Suppose Marie Manufacturers wants to make provision for an increase of R70 800 in fixed manufacturing overheads and a decrease in variable manufacturing costs of R240 per unit. Taking these changes into account, calculate the new break-even value.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started