Question
Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the
Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. (4 marks) 3.2 Use the marginal income ratio to calculate the break-even value. (4 marks) Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. 3.3 (4 marks) 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. (4 marks) Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. (4 marks) INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2 400 units 2. Selling price per table R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads R96 4. Fixed manufacturing overheads R216 960 5. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5%
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