Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is Siyaya Corporation's contribution format income statement for last month: Sales R2 800 000 Less variable expenses R1 680 000 Contribution margin R1

The following is Siyaya Corporation's contribution format income statement for last month:

Sales R2 800 000
Less variable expenses R1 680 000
Contribution margin R1 120 000
Less fixed expenses R780 000
Net income (profit) R340 000

A total of 56 000 units were produced and sold last month. The company has no beginning or ending inventories.

Required:

(a) What is the contribution per unit and the contribution to sales ratio? (6)

(b) What is the companys breakeven in sales Rands? (6)

(c) How many units would the company have to sell to attain a target profit of R550 000? (6)

(d) What is the companys margin of safety? (6)

(e) What is the company's degree of operating leverage in Rands? (6)

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

More Books

Students also viewed these Accounting questions

Question

=+What values of N, T, and D force the server environment to fail?

Answered: 1 week ago

Question

summarize the history of work psychology;

Answered: 1 week ago