S- Sx Ltd manufactures a toy car called the S-Extreme car. They have two operating machines operating in the factory at

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S Sx Ltd Manufactures A Toy Car Called The S Extreme Car They Have Two Operating Machines Operating In The Factory At 1 (59.1 KiB) Viewed 56 times

S- Sx Ltd manufactures a toy car called the S-Extreme car. They have two operating machines operating in the factory at 90% capacity. One machine can produce 5 000 s-Extreme cars per month. There are four weeks in a month and all cars manufactured is sold in the month of manufacture. The S-Extreme car has a selling price of R150. The following costs are incurred on a monthly basis in the manufacturing of the S-Extreme cars. 1. Plastic purchased per week, R112 500. 2. Wages of machine operators: R4 500 per week, there are 8 machine operators on duty at any time. 3. Monthly salary of factory supervisor, R55 000. 4. Depreciation on machines R480 000 per annum. 5. Rates and taxes of R10 000 per month and must be apportioned according to floor space. (Factory takes up 85% of the total floor space). (9) Required: Q.4.1 Complete the following schedule of the costs indicated above in order to determine the total fixed and variable cost per month, by using monthly figures. Fixed cost per month (R) Variable cost per month (R) Cost 1. 2. 3. 4. 5. Total 0.4.2 Calculate the variable cost per unit manufactured. (3) Q.4.3 Determine the break-even point in units. (3) Q.4.4 Determine the break-even point in rand value. (2) 2) 0.4.5 How many units need to be sold to make a net profit before tax of R150 000 per (3) month.