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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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