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Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail
Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes.
The following information relates to one of their popular products, the orange flavor:
| Selling price per unit | R20.00 |
| Variable cost per unit | R6.50 |
| Fixed cost per unit* | R10.00 |
| Annual sales in units | 99 000 |
*Fixed cost was allocated based on an expected annual production of 100 000 units.
REQUIRED:
Calculate the products current annual net income.
Round off to 2 decimal places where required.
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