Refer to the three proposals that the company was considering to assist the previously disadvantaged women...
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Refer to the three proposals that the company was considering to assist the previously disadvantaged women and answer each of the questions independently. (You are advised to use the expanded contribution margin model to present your answers.) 4.1 Based on the figures achieved for July to December 2022, calculate the selling price per litre that would have enabled the service station to break even. (5 marks) 4.2 Based on the figures achieved for July to December 2022, how many litres of diesel would have had to be sold to achieve an operating profit of R2 per litre? (5 marks) 4.3 Calculate the total Contribution Margin and Operating Profit/Loss per month if Proposal 1 is implemented. (5 marks) 4.4 How many litres of diesel need to be sold each month to achieve the operating profit of R25 000 per month, if Proposal 2 is accepted? (5 marks) 4.5 Calculate the saving in monthly fixed costs that is necessary to yield an operating profit of R30 000 if Proposal 3 is accepted. (5 marks) Refer to the three proposals that the company was considering to assist the previously disadvantaged women and answer each of the questions independently. (You are advised to use the expanded contribution margin model to present your answers.) 4.1 Based on the figures achieved for July to December 2022, calculate the selling price per litre that would have enabled the service station to break even. (5 marks) 4.2 Based on the figures achieved for July to December 2022, how many litres of diesel would have had to be sold to achieve an operating profit of R2 per litre? (5 marks) 4.3 Calculate the total Contribution Margin and Operating Profit/Loss per month if Proposal 1 is implemented. (5 marks) 4.4 How many litres of diesel need to be sold each month to achieve the operating profit of R25 000 per month, if Proposal 2 is accepted? (5 marks) 4.5 Calculate the saving in monthly fixed costs that is necessary to yield an operating profit of R30 000 if Proposal 3 is accepted. (5 marks)
Expert Answer:
Answer rating: 100% (QA)
41 Breakeven Selling Price per Litre Contribution Margin per Litre Selling Price per Litre Variable Cost per Litre Fixed Costs R1200000 Total Litres S... View the full answer
Related Book For
Probability And Statistics
ISBN: 9780321500465
4th Edition
Authors: Morris H. DeGroot, Mark J. Schervish
Posted Date:
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