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QUESTION 2 [12 MARKS] Poifo Motlhaleng makes jackets for men labeled PoF2010.The variable cost per jacket is P350 and its selling price is P600.Fixed costs
QUESTION 2 [12 MARKS]
Poifo Motlhaleng makes jackets for men labeled PoF2010.The variable cost per jacket is P350
and its selling price is P600.Fixed costs are P40 000.He targeted to make P50 000 profit.
Calculate the:
a) Contribution margin if he sells 100 jackets. (4 marks)
b) Contribution margin ratio (2 marks)
c) How many jackets Poifo Motlhaleng should sell to break even. (3 marks)
d) How much he should sell to meet his desired target profit. (3 marks)
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