Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the information provided below to calculate the following independently: 3 . 1 Break - even quantity 3 . 2 Margin of safety ( in

Use the information provided below to calculate the following independently:
3.1 Break-even quantity
3.2 Margin of safety (in Rands)
3.3 The selling price per unit that will enable the company to break even
Information
The following budgeted information was extracted from the budget of Brad Manufacturers:
Sales 30000 units
Selling price per unit R220
Direct materials cost per unit R30
Direct labour cost per unit R20
Variable manufacturing overheads cost per unit R10
Fixed manufacturing costs R1800000
Variable cost per unit R40
Fixed marketing and administration costs R600000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the breakeven quantity we need to use the following formula Breakeven quantity Fixed co... 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

Fundamental Accounting Principles Volume II

Authors: Larson Kermit, Jensen Tilly

14th Canadian Edition

71051570, 0-07-105150-3, 978-0071051576, 978-0-07-10515, 978-1259066511

More Books

Students also viewed these Accounting questions

Question

What are organization costs? List examples of these costs.

Answered: 1 week ago