Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marg
Posted: Tue Jul 05, 2022 11:25 am
Study the information given below and answer each of thefollowing questions independently:
3.1 Calculate the total Marginal Income and Net Profit/Loss ifall the tables are sold. (4 marks)
3.2 Use the marginal income ratio to calculate the break-evenvalue. (4 marks)
3.3Calculate the new total Marginal Income and Net Profit/Loss,if an increase in advertising expense by R100 000 is expected toincrease sales by 400 units.
3.4 How many units must be sold if the company wishes to earn anet profit of R298 920. (4 marks)
3.5Based on the expected sales volume of 2 400 units, determinethe sales price per unit (expressed in rands and cents) that willenable the company to break even. (4 marks)
INFORMATION Samcor Limited manufactures tables. The followinginformation was extracted from the budget for the year ended 30June 2022:
1. Total production and sales 2 400 units
2. Selling price per table R1 200
3. Variable manufacturing costs per table: Direct material R288Direct labour R192 Overheads R96 4. Fixed manufacturing overheadsR216 960 5. Other costs: Fixed marketing and administrative costsR144 000 Sales commission 5%
3.1 Calculate the total Marginal Income and Net Profit/Loss ifall the tables are sold. (4 marks)
3.2 Use the marginal income ratio to calculate the break-evenvalue. (4 marks)
3.3Calculate the new total Marginal Income and Net Profit/Loss,if an increase in advertising expense by R100 000 is expected toincrease sales by 400 units.
3.4 How many units must be sold if the company wishes to earn anet profit of R298 920. (4 marks)
3.5Based on the expected sales volume of 2 400 units, determinethe sales price per unit (expressed in rands and cents) that willenable the company to break even. (4 marks)
INFORMATION Samcor Limited manufactures tables. The followinginformation was extracted from the budget for the year ended 30June 2022:
1. Total production and sales 2 400 units
2. Selling price per table R1 200
3. Variable manufacturing costs per table: Direct material R288Direct labour R192 Overheads R96 4. Fixed manufacturing overheadsR216 960 5. Other costs: Fixed marketing and administrative costsR144 000 Sales commission 5%