Study the information given below and answer each of the following questions independently: 3.1 Calculate the...
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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) 3.3 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. (4 marks) 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 3.5 155 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. INFORMATION (4 marks) (4 marks) I 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 Selling price per table 2 400 units R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads 4. Fixed manufacturing overheads R96 R216 960 5. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5% 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) 3.3 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. (4 marks) 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 3.5 155 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. INFORMATION (4 marks) (4 marks) I 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 Selling price per table 2 400 units R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads 4. Fixed manufacturing overheads R96 R216 960 5. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5%
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