Question
The information below concerns the manufacture of a component called Triple X: Budgeted sales volume in units 2 000 Variable cost per unit: Manufacturing R135
The information below concerns the manufacture of a component called Triple X:
Budgeted sales volume in units | 2 000 |
Variable cost per unit: |
|
Manufacturing | R135 |
Distribution | R125 |
Fixed overheads: |
|
Manufacturing | R47 500 |
Distribution and administration | R22 500 |
Expected selling price per unit | R400 |
Calculate the following from the above information:
1.1 Marginal income (Contribution) ratio.
1.2 Break-even quantity.
1.3 Break-even value using units.
1.4 Break-even value using marginal income (Contribution) ratio.
1.5 Margin of safety in terms of value.
1.6 Margin of safety in terms of units.
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