Question
REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. (2 Marks) 2.2 Calculate the sales
REQUIRED Use the information provided below to answer each of the following questions independently:
2.1 Calculate the break-even quantity. (2 Marks)
2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. (4 Marks)
2.3 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks)
INFORMATION The following information was extracted from the budget of Marys Manufacturers for the period July to December 2021:
1 | Total production and sales | 2 300 units |
2 | Selling price per unit | R200 |
3 | Variable manufacturing costs per unit: |
|
| Direct materials | R60 |
| Direct labour | R40 |
| Overheads | R20 |
4 | Fixed manufacturing overheads | R200 000 |
5 | Other costs: |
|
| Fixed marketing and administrative costs | R100 000 |
| Sales commission | 10% of sales |
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