Question
QUESTION 4 (25 Marks) Smarty Limited manufactures and sells only one product. The budgeted details for 2022 are as follows. Number of units sold per
QUESTION 4 (25 Marks) Smarty Limited manufactures and sells only one product. The budgeted details for 2022 are as follows. Number of units sold per month 185 000 Selling price per unit R5,00 Variable cost per unit R3,60 Total fixed costs. R2 350 000,00 REQUIRED 4.1 Calculate the total marginal income and budgeted net profit (loss) for 2022. (5) 4.2 Calculate the breakeven quantity and value. (5) 4.3 Suppose Smarty Limited wants to make provision for 10% increase in fixed costs and an increase in variable costs by R0.20 per unit. Taking these increases into account, calculate the following: 4.3.1 New breakeven quantity and value. (5) 4.3.2 Safety margin as a percentage. (5) 4.3.3 The number of units that need to be sold to earn a net profit of R850 000 (5)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started