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quick QUESTION 4 (13 marks) Kubrik Ltd is a manufacturing firm Presented below, in contribution margin format, is the budgeted statement of comprehensive income for
quick QUESTION 4 (13 marks) Kubrik Ltd is a manufacturing firm Presented below, in contribution margin format, is the budgeted statement of comprehensive income for the year ending 31 December 2020. $ 560 000 KUBRIK LTD Budgeted Statement of Comprehensive Income For the Year Ended 31 December 2020 $ Sales (8 000 units) Less: Variable manufacturing expenses Direct materials 175 000 Direct labour 82 750 Variable factory overhead 58 750 Total variable manufacturing expenses Gross contribution margin Less: Variable operating expenses Selling & administration 43 500 Contribution margin Less: Fixed expenses Fixed factory overhead 76 500 Fixed selling & administration expense 37 500 Total fixed expenses Net profit 316 500 243 500 43 500 200 000 114 000 86 000 Kubrik's management is planning to award the factory workers a 12% wage increase. As a result the variable factory overhead will also increase by $6 120. To compensate, management is looking to increase the selling price by $2.35 per unit. Fixed factory overhead is expected to decrease by $1 750. Required: a) Calculate the new break-even point in units & dollars if management goes ahead with the proposed changes. b) Calculate the revised expected net profit
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