Question
Raw materials R 210 per unit Direct labour R 110 per unit Factory foreman's salary R 2500 per month Rental of factory R 3400 per
Raw materials
R 210 per unit
Direct labour
R 110 per unit
Factory foreman's salary
R 2500 per month
Rental of factory
R 3400 per month
Rates and taxes
R 1000 per month
Sales representatives' commission
R 100 per unit
Advertising costs
R 840 per month
Indirect materials
R 45 per unit
Insurance premium on factory
R 965 per month
Quality controller's salary
R 220 per month
Transport for raw materials
R 100 per batch of raw materials needed to produce ten doors
Selling price
R 900 per unit
2.1 Calculate the variable cost per unit. (2)
2.2 Calculate the total fixed cost per month. (2)
2.3 Calculate the marginal income per unit. (2)
2.4 Calculate the break-even point in units (3)
2.5 Calculate the break-even point in Rand value (2)
2.6 Draw a CVP graph that illustrates the CVP-analysis of this product. (22)
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