Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tennis Tonic (Pty) Ltd manufactures and sells Tennis racquets. An extract from the company's marginal income statement for the month of June 2023 as well

image text in transcribed
image text in transcribed
Tennis Tonic (Pty) Ltd manufactures and sells Tennis racquets. An extract from the company's marginal income statement for the month of June 2023 as well as comparative numbers is provided below: Additional information: The manufacturing equipment is leased at a flat rate per month plus an additional cost based on the number of units produced per year. Depreciation relates to equipment owned by Tennis Tonic, which is depreciated at 10% per annum on the straight-line method. a) Indicate whether the cost involved would be variable, fixed or semi variable (mixed) (3) b) Calculate the total variable cost per unit in the month of June 2023. (6) c) Calculate contribution per unit. (2) d) Calculate break-even point in units. (4)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

IT Auditing And Application Controls For Small And Mid Sized Enterprises Revenue Expenditure Inventory Payroll And More

Authors: Jason Wood, William Brown, Harry Howe

1st Edition

1118072618, 9781118072615

More Books

Students also viewed these Accounting questions