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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

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