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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 are units at R each. The estimated costs for the year comprise of direct materials and direct labour of R and R per unit respectively. Fixed factory overheads are R per annum, fixed administrative expenses are R per annum and selling expenses are calculated at of selling price per unit. Required: Calculate the breakeven quantity round off to nearest unit Calculate the breakeven value. Calculate the breakeven value using the marginal income ratio. Calculate the selling price per unit if the profit per unit is R using the sales quantity of units provided information above. Calculate the new breakeven quantity and value if the selling price is decreased byround off to nearest unit
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