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The following information relates to Books Ltd for the three products it manufactures namely, A, B and C DETAILS Sales Manufacturing overheads Gross Profit
The following information relates to Books Ltd for the three products it manufactures namely, A, B and C DETAILS Sales Manufacturing overheads Gross Profit Non-Manufacturing overheads Net Profit Sales units A R 3 750 000 1 650 000 2 100 000 875 000 REQUIRED: 1 225 000 2 000 000 B R 4 500 000 2 350 000 2 150 000 1 105 000 1 250 000 3 500 000 C R 2 850 000 1 300 000 1 550 000 725 000 825 000 2 750 000 Non-manufacturing overheads include costs which vary with activity at a rate of 10% of the sales value. Fixed manufacturing overheads are absorbed at a rate of R0,25 per unit. Prepare a statement showing the per unit value of sales, variable costs and profit contribution, for each of the three (3) products. Show your calculations as marks will be awarded for these.
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