alculate the total Marginal Income and Net Profit/Loss if allthe tables are sold.
3.2 Use the marginal income ratio to calculate thebreak-even value.
3.3 Calculate the new total Marginal Income and NetProfit/Loss, if an increase in advertising expense by R100 000 isexpected to increase sales by 400 units.
3.4 How many units must be sold if the company wishes toearn a net profit of R298 920.
3.5 Based on the expected sales volume of 2 400 units,determine the sales price per unit (expressed
in rands and cents) that will enable the company to breakeven.
INFORMATION
(4 marks) (4 marks) (4 marks)
(4 marks) (4 marks)
Samcor Limited manufactures tables. The following informationwas extracted from the budget for the year ended 30 June 2022:
1.
Total production and sales
2 400 units
2.
Selling price per table
R1 200
3.
Variable manufacturing costs per table:
Direct material
R288
Direct labour
R192
Overheads
R96
4.
Fixed manufacturing overheads
R216 960
5.
Other costs:
Fixed marketing and administrative costs
R144 000
Sales commission
5%
alculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.2 Use the marginal income ratio to
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