Use the following information to answer questions 6. 7. 8. 9. 10 and 11: Virtual Reality Gaming (Pty) Ltd (VRG) uses the first-in-first-out (FIFO) method of inventory valuation VRG manufactures and selstwo (2) types of entertainment unit gaming consoles consoles), an X-Play UnitCXPU) and a Station-Box-Unit (SBU) Based on the historical observations, the highest number of consoles are sold and distributed during December while the lowest number of consoles are sold and distributed in January The following information was used to prepare VRG's budget for the financial year ending 31 March 2020: Sales and manufacturing VRG's annual manufacturing and sales budget for XPU is 540 000 units while the annual manufacturing and sales budget for SBU is 900 000 units. No opening and closing inventory of any type are budgeted for. The contribution margin ratios are 25% for XPU and 38% for SBU. Manufacturing costs Each console is fitted with one (1) externally sourced core processor at R3 500 for XPU and R3 800 for SBU. Each core processor is subsequently covered with a high-quality plastic cover shell at R85 for each XPU and R105 for each SBU. Each of VRG'S consoles boasts eight (8) gigabytes of random access memory (RAM) at a cost of R150 per gigabyte. The console assembly process is machine intensive and highly automated Variable manufacturing overheads relate to the machinery-related assembly process at R3 800 per machine hour. The budgeted machine time per unit is 42 minutes and 45 minutes for XPU and SBU, respectively. Direct labourers are utilised for various direct manufacturing activities including but not limited to, the console inspections and padung Direct labour time for XPU unit is 3.5 hours and for SBU unit is 3.8 hours. Direct labour cost is R250 per direct labour hour. Each console is packed in a custom-made packaging box at a cost of R12 per box Distribution costs and sales commission The distribution costs are semi-variable and are split using the high-low method. During the month of December 2018, 160 000 consoles were sold and distributed at a total distribution cost of R1 940 000 while during the month of January 2019, 15 000 consoles were sold and distributed at a total distribution cost of R1 360 000. The unit variable distribution costs for the 2020 financial year was budgeted to be the same as that of the 2019 financial year. The monthly fixed distribution costs for the 2020 financial year were however budgeted to be R25 000 more than the 2019 financial year's monthly fixed distribution costs To maintain their exclusivity, VRG's consoles are sold only at Platinum-Mart (PM) an upmarket and fast moving consumer goods retail store. VRG pays PM a selling commission of R208 for each XPU sold and R216 for each SBU sold MAC3761/Assignment01/0/2020 Other costs All of VRG's operations are from an 8 000 m property, leased at a ford rental expense of R189 200 per month. This property is classified as a manufacturing property. The lease agreement does not fail within the ambit of International Financial Reporting Standard IFRS) 16. VRG's policy is to recognise rental expenses on a straight-line basis. The budget for the annual foed Gaming Licence fee is R533 400 000 while annual foxed administrative labour costs are R1 375 340 000 Take note: For questions 6, 7, 8, 9 and 11, where applicable, your sales mix must be a whole number or whole numbers QUESTION The budgeted selling price frounded to the nearest Rand) per unit of XPU for the 2020 financial year is (1) (3) R10 679 R24 600 RB 200 R12 487 none of the above options (4) (5) Use the following information to answer questions 6. 7. 8. 9. 10 and 11: Virtual Reality Gaming (Pty) Ltd (VRG) uses the first-in-first-out (FIFO) method of inventory valuation VRG manufactures and selstwo (2) types of entertainment unit gaming consoles consoles), an X-Play UnitCXPU) and a Station-Box-Unit (SBU) Based on the historical observations, the highest number of consoles are sold and distributed during December while the lowest number of consoles are sold and distributed in January The following information was used to prepare VRG's budget for the financial year ending 31 March 2020: Sales and manufacturing VRG's annual manufacturing and sales budget for XPU is 540 000 units while the annual manufacturing and sales budget for SBU is 900 000 units. No opening and closing inventory of any type are budgeted for. The contribution margin ratios are 25% for XPU and 38% for SBU. Manufacturing costs Each console is fitted with one (1) externally sourced core processor at R3 500 for XPU and R3 800 for SBU. Each core processor is subsequently covered with a high-quality plastic cover shell at R85 for each XPU and R105 for each SBU. Each of VRG'S consoles boasts eight (8) gigabytes of random access memory (RAM) at a cost of R150 per gigabyte. The console assembly process is machine intensive and highly automated Variable manufacturing overheads relate to the machinery-related assembly process at R3 800 per machine hour. The budgeted machine time per unit is 42 minutes and 45 minutes for XPU and SBU, respectively. Direct labourers are utilised for various direct manufacturing activities including but not limited to, the console inspections and padung Direct labour time for XPU unit is 3.5 hours and for SBU unit is 3.8 hours. Direct labour cost is R250 per direct labour hour. Each console is packed in a custom-made packaging box at a cost of R12 per box Distribution costs and sales commission The distribution costs are semi-variable and are split using the high-low method. During the month of December 2018, 160 000 consoles were sold and distributed at a total distribution cost of R1 940 000 while during the month of January 2019, 15 000 consoles were sold and distributed at a total distribution cost of R1 360 000. The unit variable distribution costs for the 2020 financial year was budgeted to be the same as that of the 2019 financial year. The monthly fixed distribution costs for the 2020 financial year were however budgeted to be R25 000 more than the 2019 financial year's monthly fixed distribution costs To maintain their exclusivity, VRG's consoles are sold only at Platinum-Mart (PM) an upmarket and fast moving consumer goods retail store. VRG pays PM a selling commission of R208 for each XPU sold and R216 for each SBU sold MAC3761/Assignment01/0/2020 Other costs All of VRG's operations are from an 8 000 m property, leased at a ford rental expense of R189 200 per month. This property is classified as a manufacturing property. The lease agreement does not fail within the ambit of International Financial Reporting Standard IFRS) 16. VRG's policy is to recognise rental expenses on a straight-line basis. The budget for the annual foed Gaming Licence fee is R533 400 000 while annual foxed administrative labour costs are R1 375 340 000 Take note: For questions 6, 7, 8, 9 and 11, where applicable, your sales mix must be a whole number or whole numbers QUESTION The budgeted selling price frounded to the nearest Rand) per unit of XPU for the 2020 financial year is (1) (3) R10 679 R24 600 RB 200 R12 487 none of the above options (4)