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QUESTION 5 COST-VOLUME-PROFIT ANALYSIS (20 Marks) The information below concerns the prospective manufacture of a component called X: 1 000 R35 R25 Budgeted sales volume
QUESTION 5 COST-VOLUME-PROFIT ANALYSIS (20 Marks) The information below concerns the prospective manufacture of a component called X: 1 000 R35 R25 Budgeted sales volume in units Variable cost per unit: Direct materials Direct labour Fixed overheads: Manufacturing Distribution and administration Expected selling price per unit R7 500 R2 500 R200 Required: Calculate the following from the above information: 5.1 Marginal income ratio 5.2 Break-even quantity. 5.3 Break-even value. 5.4 Margin of safety in terms of value. 5.5 Margin of safety in terms of units. (4 marks) (4 marks) (4 marks) (4 marks) (4 marks)
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