Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product

Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level:

Fixed administrative cost per unit R90.00

Total fixed manufacturing overhead R120 000

Total fixed marketing cost R50 000

Direct material usage per product 2 kg

Direct material price per kilogram R14.50

Total direct labour cost R47 500

Required:

Compile a marginal income statement to determine the break-even units and break-even value.

(a) Calculate total sales

(b) Calculate total variable cost

(c) Calculate total fixed cost

(d) Calculate net profit

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

Accounting The Basis For Business Decisions

Authors: Robert F. Meigs, Jan R. Williams, Susan F Haka, Mark S. Bettner

International 11th Edition

007115809X, 978-0071158091

More Books

Students also viewed these Accounting questions