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QUESTION FOUR GKJJ Ltd manufactures and sells a single product. The budgeted monthly information for the next year is as follows: 3 Required: 4.1 Calculate
QUESTION FOUR GKJJ Ltd manufactures and sells a single product. The budgeted monthly information for the next year is as follows: 3 Required: 4.1 Calculate the budgeted profit for the year by using cost-volume-profit principles. (5) 4.2 How many units must be sold per year if the company wishes to earn 10% net profit per unit on the initial investment? (5) 4.3 What is the breakeven point in units and in value? (5) 4.4 Using the figures for the year, assume that there is an increase of 10% in fixed costs and an increase to R2.50 per unit in variable costs. Calculate: 4.4.1 The breakeven point in value and in units (5) 4.4.2 The margin of safety value and the margin of safety ratio (5) END OF QUESTION PAPER
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