Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information given below to answer the following questions independently:2.1 Calculate the total Marginal Income and Net Profit/Loss if all 30 000 units are

Use the information given below to answer the following questions independently:2.1 Calculate the total Marginal Income and Net Profit/Loss if all 30 000 units are sold. (4 marks)2.2 Calculate the number of units that must be sold in order to break even. (4 marks)2.3 Calculate the number of units that are required to break even, if the selling price is reduced by 10%. (4 marks)2.4 Will a decrease of R25 per unit in the variable manufacturing costs together with an increase of R350 000 in the total fixed costs increase the net profit? Show the relevant calculations. (4 marks)2.5 Calculate the selling price per unit that will enable the project to break even, if no sales commission is payable. (4 marks)

image text in transcribed
QUESTION 2 (20 Marks) REQUIRED Use the information given below to answer the following questions independently: 2.1 Calculate the total Marginal Income and Net Profit/Loss if all 30 000 units are sold. (4 marks) 2.2 Calculate the number of units that must be sold in order to break even. (4 marks) 2.3 Calculate the number of units that are required to break even, if the selling price is reduced by 10%. (4 marks) 2.4 Will a decrease of R25 per unit in the variable manufacturing costs together with an increase of R350 000 in the total fixed costs increase the net profit? Show the relevant calculations. (4 marks) 2.5 Calculate the selling price per unit that will enable the project to break even, if no sales commission is payable. (4 marks) INFORMATION Siya Manufacturers plans to start Project M and the following information is applicable to the project for the first financial year: Estimated sales 30 000 units Selling price per unit R360 Direct materials cost per unit R120 Direct labour cost per unit R60 Variable manufacturing overheads cost per unit R72 Fixed manufacturing overheads R1 020 000 Fixed selling and administrative expenses R600 000 Sales commission per unit 10% of the selling price

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Perioperative Pain Management For General And Plastic Surgery

Authors: Deepak Narayan, Alan D Kaye, Nalini Vadivelu

1st Edition

0190457007, 978-0190457006

More Books

Students also viewed these General Management questions

Question

What is a confidence interval?

Answered: 1 week ago

Question

It would have cost more to complain.

Answered: 1 week ago