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Sultan Ltd plans to manufacture crockery sets and the following information is applicable: Estimated sales for the 14 000 units at R80 each 2016 year
Sultan Ltd plans to manufacture crockery sets and the following information is applicable: Estimated sales for the 14 000 units at R80 each 2016 year Estimated costs for the 2016 year Direct material R24 unit per Direct labour R4 per unit Factory overheads (all fixed) R48 000 per annum 30% of sales Selling expenses R78 000 per annum Administrative expenses (all fixed) Required: 3.1 Calculate the break-even quantity. 3.2 Calculate the break-even value using the break - even quantity. 3.3 Calculate the break-even value using the marginal income ratio. 3.4 Calculate the selling price per unit if the profit per unit is R4. 3.5 Calculate the new break-even quantity and value if selling price is increased by 10%
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