Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Limpopo Limited plans to manufacture a new energy efficient outdoor light and the following information is available: The estimated sales for the year 2 0

Limpopo Limited plans to manufacture a new energy efficient outdoor light and the following information is available: The estimated sales for the year 2024 are 5000 units at R30 each. The estimated costs for the 2024 year comprise of direct materials and direct labour of R9 and R2 per unit respectively. Fixed factory overheads are R20000 per annum, fixed administrative expenses are R23000 per annum and selling expenses are calculated at 20% of selling price per unit. Required: 1.1 Calculate the breakeven quantity (round off to nearest unit).1.2 Calculate the breakeven value. 1.3 Calculate the breakeven value using the marginal income ratio. 1.4 Calculate the selling price per unit if the profit per unit is R2 using the sales quantity of 5000 units provided information above. 1.5 Calculate the new breakeven quantity and value if the selling price is decreased by10%(round off to nearest unit).

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 And Finance For Non-Specialists

Authors: Eddie McLaney, Peter Atrill

11th Edition

1292244011, 9781292244013

More Books

Students also viewed these Accounting questions

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago