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QUESTION FOUR PARTA Hillman Ltd sells a kitchen utensil for Rs10000. The unit variable cost per utensil is Rs5000 plus a selling commission of 10%.
QUESTION FOUR PARTA Hillman Ltd sells a kitchen utensil for Rs10000. The unit variable cost per utensil is Rs5000 plus a selling commission of 10%. Fixed manufacturing costs total Rs125,000 per month, while fixed selling and administrative costs total R$250,000. The company is budgeting a sale of 5000 utensils for the current month. .. What is the contribution margin per utensil? What is the breakeven point in utensils? How many utensils must be sold to eam a targeted profit of Rs 750,000 Calculate the Margin of Safety as a percentage of sales. Briefly outline the main limitations of the Break Even Analysis. PART B For the next 6 months period, market research has found that the selling price of a new protective cover for the utensils will be one and a half time of its cost per unit. Hillman's cost accountant has provided the following details with respect to overheads: Month SD cards sold on heads (Rs) my $21.000 February 10 09.000 540.000 March 500 April 14100 $57.000 May 2900 Pung Richman is expecting that sales for July will reach 4500 covers. Calculate the selling price of one cover in July Answer Part B ONLY
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