Ecstatic (Pty) Ltd started off producing a single product, called ‘A’. Price and cost details per unit are: R Selling Pr

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Ecstatic (Pty) Ltd started off producing a single product,
called ‘A’. Price and cost details per unit are:
R
Selling Price
R275
Direct Material
5kgs at R20/kg
R100
Direct Labour
4 hours at R25/hr
R100
Manufacturing Overhead
R70
Net Profit
R5
Product A, requires 10 hours of machine time. Actual
manufacturing overheads are incurred according to the following
cost volume relationship:
Overheads
R325 000
R700 000
Machine Hours
25 000
100 000
Q1
Ecstatic breakeven point in units is:
Q2
Ecstatic breakeven value is:
Q3
Type in Ecstatic’s margin of safety % assuming they sell 12000
units:
_____________
Q4
The production overheads behaviour us best described as
Q5.
Ecstatics product cost according to variable costing principles
is:
Q6.
The PV Ratio is calculated as follows: