QUESTION 1 [25/100]

1.1 Discuss the three general types of cost behavior and explain how retail managers can utilize them to achieve cost-effective business productions.

a. Variable Costs

b. Fixed Costs

c. Mixed Costs

1.2 XYZ Manufacturing is a Company that produces and sells a product. The following information is available:

Selling price per unit: R50

Variable cost per unit: R30

Fixed costs: R20,000

Calculate the following:

a) Break-even point in units. (4)

b) Break-even point in sales revenue. (2)

c) The profit or loss if 1,000 units are sold. (5)

d) The number of units that need to be sold to achieve a profit of R10,000. (4)