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Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products.
Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products. (c) The company also manufactures CDs for music Publishers, in units of 100 disks. The variable labour cost is Rs20 per unit and its variable material cost is Rs40 per unit, while its fixed costs are R$800,000 per annum. Selling price is Rs 100 per unit. (0) Calculate the break-even revenue. (1 mark) (0) Calculate the break-even in units. (1 mark) (ii) The company is considering replacing its press with a faster machine which will reduce labour costs to Rs 10 per unit and increase fixed costs to Rs1,000,000 per annum. With the drop in music sales, sales are expected to drop to 25,000 units per annum. Is this investment worthwhile? Show your calculations
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