Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 1 . 1 Differentiate between fixed costs and variable costs and provide two examples of each for a car dealership. 1 . 2

QUESTION 1
1.1 Differentiate between fixed costs and variable costs and provide two examples of each for a car dealership.
1.2 A company manufacturing screen protectors sells each unit for R40 to different electronic stores in South Africa. The unit variable cost is R10, and the company's fixed costs are R30000 per month.
1.2.1 Determine the breakeven number of units the company should aim for.
1.2.2 Determine the contribution margin ratio.
1.2.3 Determine the breakeven point in sales rand that the company should aim for.
1.2.4 The company has a target of R60000 in profit for next month. Determine the total sales in rands the company should sell in order to achieve that profit.
(3)
image text in transcribed

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 Principles

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

11th Edition

111856667X, 978-1118566671

More Books

Students also viewed these Accounting questions