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total production capacity (100%):1000 units Selling price portable:R500 Variable production cost(per table) R Direct material 120 Direct labour 80 Overhaeds 40 Fixed production overheads 90
total production capacity (100%):1000 units
Selling price portable:R500
Variable production cost(per table) R
Direct material 120
Direct labour 80
Overhaeds 40
Fixed production overheads 90 000
Selling and administrative expenses
Salary of sales manager for the year 60 000
Sales commission 5%
Income tex rate 30%
Stock on hand Nill
(a)calculate the budgeted break-even value by using the marginal income ratio if the company spends R145 000 on advertising
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