Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 4 (14) The advent of a hybrid motor car which can be fuel-driven or battery driven for situations where it is not affordable to

image text in transcribed
QUESTION 4 (14) The advent of a hybrid motor car which can be fuel-driven or battery driven for situations where it is not affordable to use fuel, an entrepreneur has started a factory to manufacture a battery that uses zinc-air as energy. The battery existing manufacturing line would cost R4 million. Fixed costs per year include sales, marketing, and advertising making a total of R3 million, and other fixed costs totaling R2 million. 4.1 What is the total variable cost per battery? (5) 4.2 What are the total fixed costs for the battery? (5) 4.3 If the price of the battery is set at R450, what would be the break-even volume? (5) QUESTION 5 (29) A group of local residents have formed a cooperative to manufacture stationery. One of the items produced is ballpoint pens. The mini-factory sells the ballpoint pens for R300 per dozen. The manufacturing costs are R18 per ballpoint pen. Costs including all selling and administrative costs except advertising are R80 000. 5.1 How many dozens must the manufacture sell to cover these costs and be able to pay and advertising campaign of R24 000

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 For Deferred Income Taxes

Authors: Bobby Carmichael

2nd Edition

1119724562, 9781119724568

More Books

Students also viewed these Accounting questions