Question
Use the information provided below to calculate the following independently: 2.1 Total Marginal Income and Net Profit/Loss 2.2 Break-even value 2.3 Selling price per unit
Use the information provided below to calculate the following independently:
2.1 Total Marginal Income and Net Profit/Loss
2.2 Break-even value
2.3 Selling price per unit that will enable the project to break even manufacturing costs increase by 5%
Total Marginal Income and Net Profit/Loss if the variable manufacturing costs increase by 5%
2.5 Break-even quantity if the selling price drops by 10%.
INFORMATION
Caprice Limited plans to start Project Midas and the following are the forecasts for 2024: Sales 50 000 units at R60 per unit Direct materials cost per unit R16 Direct labour cost per unit R14 Variable selling costs per unit 10% of the sales price Manufacturing overhead costs (all fixed) R400 000 Fixed selling and administrative costs R560 000
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