The Gattonside Gumbo Company Ltd's production capacity is 10 000 Units, and usual<\/p>
selling price is $10 per unit.<\/p>
Unit costs are found as follows:<\/p>
<\/p>
Direct Materials<\/p>
2 kilograms resin @ $2.05 per kilogram<\/p>
1 kilogram hardener @ $1.20 per kilogram<\/p>
<\/p>
Direct Labour<\/p>
It takes 10 minutes to produce one unit and Direct Wages are<\/p>
paid at the rate of $12 per hour.<\/p>
Variable Overheads<\/p>
$0.90 per unit for the first 8000 units, and<\/p>
$0.85 per unit for the remainder.<\/p>
Fixed Overheads<\/p>
$0.75 per unit at full production.<\/p>
For<\/p>
Examiner's<\/p>
Use<\/p>
<\/p>
var isIE = false; var f10 = [['t7_10',1358],['ta_10',624],['ts_10',1826],['tt_10',574],['tu_10',652],['tv_10',329],['tw_10',823],['tx_10',886],['ty_10',284],['tz_10',1284],['t10_10',661],['t11_10',414],['t12_10',861],['t13_10',673],['t14_10',358],['t15_10',663]]; function load10(){ var timeout = 100; if (navigator.userAgent.match(\/iPhone|iPad|iPod|Android\/i)) timeout = 500; setTimeout(function() {adjustWordSpacing(f10);},timeout); } This preview<\/em><\/strong> has intentionally blurred<\/em><\/strong> sections. Sign up<\/em><\/strong> to view the full version.<\/p> View Full Document<\/u><\/p> 11<\/p> <\/p> 8706\/2\/O\/N\/01<\/p> [Turn over<\/p> (b)<\/p> Using marginal costing, calculate the net profit if<\/p> (i)<\/p> 7500 units are produced and sold;<\/p> (ii)<\/p> 9000 units are produced and sold.<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...............................................................................................................................<\/p> [7]<\/p> (c)<\/p> Calculate the number of units required to break even.<\/p> ..........................................................................................................................................<\/p> ..........................................................................................................................................<\/p> ..........................................................................................................................................<\/p> ......................................................................................................................................<\/p> [4]<\/p> For<\/p> Examiner's<\/p> UseThe Gattonside Gumbo Company Ltd's production capacity is 10 000 Units, and usual<\/p> selling price is $10 per unit.<\/p> Unit costs are found as follows:<\/p> <\/p> Direct Materials<\/p> 2 kilograms resin @ $2.05 per kilogram<\/p> 1 kilogram hardener @ $1.20 per kilogram<\/p> <\/p> Direct Labour<\/p> It takes 10 minutes to produce one unit and Direct Wages are<\/p> paid at the rate of $12 per hour.<\/p> Variable Overheads<\/p> $0.90 per unit for the first 8000 units, and<\/p> $0.85 per unit for the remainder.<\/p> Fixed Overheads<\/p> $0.75 per unit at full production.<\/p> For<\/p> Examiner's<\/p> Use<\/p> <\/p> var isIE = false; var f10 = [['t7_10',1358],['ta_10',624],['ts_10',1826],['tt_10',574],['tu_10',652],['tv_10',329],['tw_10',823],['tx_10',886],['ty_10',284],['tz_10',1284],['t10_10',661],['t11_10',414],['t12_10',861],['t13_10',673],['t14_10',358],['t15_10',663]]; function load10(){ var timeout = 100; if (navigator.userAgent.match(\/iPhone|iPad|iPod|Android\/i)) timeout = 500; setTimeout(function() {adjustWordSpacing(f10);},timeout); } This preview<\/em><\/strong> has intentionally blurred<\/em><\/strong> sections. Sign up<\/em><\/strong> to view the full version.<\/p> View Full Document<\/u><\/p> 11<\/p> <\/p> 8706\/2\/O\/N\/01<\/p> [Turn over<\/p> (b)<\/p> Using marginal costing, calculate the net profit if<\/p> (i)<\/p> 7500 units are produced and sold;<\/p> (ii)<\/p> 9000 units are produced and sold.<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...................................................................................................................................<\/p> ...............................................................................................................................<\/p> [7]<\/p> (c)<\/p> Calculate the number of units required to break even.<\/p> ..........................................................................................................................................<\/p> ..........................................................................................................................................<\/p> ..........................................................................................................................................<\/p> ......................................................................................................................................<\/p> [4]<\/p> For<\/p> Examiner's<\/p> Use<\/p> <\/p> <\/p>",
"transcribed_text": "",
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