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Power Ltd manufactures and sells a single product. The budgeted monthly information for the next year is as follows: 70 000 units R5 Sales per
Power Ltd manufactures and sells a single product. The budgeted monthly information for the next year is as follows: 70 000 units R5 Sales per month Selling price per unit Variable costs per unit Fixed costs per month (annual / 12 ) Initial investment R2 R150 000 R2 000 000 Required: 1.1 Calculate the budgeted profit for the year by using cost-volume-profit principles. You do not need to compile the statement of comprehensive income. (5) 1.2 How many units must be sold per year if the company wishes to earn 10% net profit per unit on the initial investment? (5) 1.3 What is the breakeven point in units and in value
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