Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please do asap and with proper workings Avheani (Pty) Ltd manufactures 100% apple juices using an almost fully automated manufacturing process. The company manufactures 48

Please do asap and with proper workings

image text in transcribed

Avheani (Pty) Ltd manufactures 100% apple juices using an almost fully automated manufacturing process. The company manufactures 48 000 units of juices per year. The following is a budgeted Income Statement for the business for June 2017: R R Sales Revenue 9,600 Direct Material 4,000 Direct Labour 960 Production Overhead 3,600 Selling Overhead 560 9.120 Profit 480 The following information is also supplied: 1. The monthly budgeted production and sales is 4,000 units. 2. The following breakdown between foxed and variable costs applies: Variable Fixed Direct Materials 100% n/a Labour R400 R560 Production Overhead R1,440 R2,160 Selling Overhead 100% n/a Required: 3.1. Calculate the following: 3.1.1 Contribution for the year 3.1.2 Contribution per unit 3.13 Contribution / sales ratio 3.1.4 Breakeven sales volume using profit formula 3.1.5 Margin of safety % 3.1.6 Sales volume required to achieve a profit of R1, 440. (4 Marks) (4 Marks) (2 Marks) (4 Marks)

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

When can a patent be declared invalid? Cite two examples.

Answered: 1 week ago

Question

How would we like to see ourselves?

Answered: 1 week ago