Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3 Study the information given below and answer each of the following questions independently: 3.1 i3 3.2 Calculate the total Marginal Income and

image text in transcribed

Question 3 Study the information given below and answer each of the following questions independently: 3.1 i3 3.2 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. (4 marks) (4 marks) 3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. (4 marks) 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. (4 marks) 3.5 Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. (4 marks) INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2 400 units 2. Selling price per table R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour Overheads 4. Fixed manufacturing overheads 5. Other costs: Fixed marketing and administrative costs Sales commission R192 R96 R216 960 R144 000 5%

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

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

2nd edition

9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828

More Books

Students also viewed these Accounting questions

Question

What is the managed float?

Answered: 1 week ago

Question

Discuss how distance and borders reduce trade. LO.1

Answered: 1 week ago