Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4 (Marks:35) SouthSouth is a company that manufactures bathroom essentials. They mainly make liquid soap for use in bathrooms in the hospitality industry. The

image text in transcribed
Question 4 (Marks:35) SouthSouth is a company that manufactures bathroom essentials. They mainly make liquid soap for use in bathrooms in the hospitality industry. The company manufactures and sels three types of soaps (Bodywash, Shampoo Conditioner). Estimates relating to the three products for the next period are as follows: Bodywash 25 000 Shampoo 15 000 25.00 Conditioner 10000 20.00 15.00 Sales demand (units) Selling price (R/unit) Variable costs (R/unit): Direct materials Direct labour Variable overheads Direct labour (hours/unit) 2.50 6.50 3.50 3.00 6.00 5.00 1.00 2.00 1.50 0.20 0.50 0.40 15 000 direct labour hours will be available. Other resources will be readily available. All direct workers will be paid R20 per hour. Required: For the next period: Round to two decimals Q.4.1 Calculate whether direct labour will be a limiting factor. (8) Q.4.2 Calculate the contribution per unit and the contribution to sales of each product. (12) 2.4.3 Calculate the production quantities of each product required in order to maximse (15) the contribution

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

Modern Financial Markets And Institutions

Authors: Glen Arnold

1st Edition

0273730355, 9780273730354

More Books

Students also viewed these Accounting questions

Question

How is cluster analysis used to group variables?

Answered: 1 week ago

Question

2. List the steps required to enter current year opening balances

Answered: 1 week ago