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Question 6 ( 6 marks; 10.8 minutes) A company manufactures a single product. Budget and standard cost details for next year include: Required: 6.1 Calculate
Question 6 ( 6 marks; 10.8 minutes) A company manufactures a single product. Budget and standard cost details for next year include: Required: 6.1 Calculate the break-even point in units. (3) 6.2 Calculate the percentage by which the budgeted sales can fall before the company begins to make a loss. The marketing manager has suggested that the selling price per unit can be increased to R25.00 if the sales commission is increased to 8% of selling price and a further R10000 is spent on advertising. 6.3 Calculate the revised break-even point based on the marketing manager's suggestion. (1)
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