Question
The following costs were incurred in the manufacturing and selling of champagne glasses during the past financial year: Depreciation on machines: R15 000 (capacity per
The following costs were incurred in the manufacturing and selling of champagne glasses during the past financial year: Depreciation on machines: R15 000 (capacity per machine: 28 000 champagne glasses per annum) Direct wages: R95 000 Direct material: R130 000 Factory rent: R30 000 Variable selling costs: R45 000 During the past financial year, 28 750 products were manufactured and sold. Selling price is R12 per unit.
Determine: 5 1. Total costs, unit costs and profit (all prices are unchanged) at the following production levels:
a) 25 000 units and 23 250 units sold
b) 9 000 units and all sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started