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Question 2: (8) You are the sales manager of your company Your company is investigating the possbility to launch a new product, a plastc container
Question 2: (8) You are the sales manager of your company Your company is investigating the possbility to launch a new product, a plastc container into the storage market However, you need to convince management that the volumes and the selling price are achievable Your cost accountant provided you with the following information Description Cost Variable cost R1,250 per unit R785,000 Incremental fixed cost You also gathered the following information Selling price is calculated as 25% mark-up on varable cost Tax rate is 28% product launched must contribute Company policy is that any neew an after-tax profit of 10% of the total sales value of the product Required 21 Calculate the number of break-even units (3) 2 2 Calculate the number of units to be sold to achieve the company's policy on the launching of new units
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