Cardo Ltd plans to manufacture a new product and the following information is applicable:Estimated sales for the year 20
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am
Cardo Ltd plans to manufacture a new product and the following information is applicable:Estimated sales for the year 20
Cardo Ltd plans to manufacture a new product and the followinginformation is applicable:Estimated sales for the year 20209500units at R100 eachEstimated sales for the year 2020DirectmaterialR20 per unitDirect labourR6 per unitFactory overheads (allfixed)R45000 per annumSelling expenses15% of salesAdministrativeexpenses (all fixed)R27000 per annumRequired-Calculate thebreak-even quantity.-Calculate the break-even value.-Calculate thebreak-even value using the marginal income ratio.-Calculate theselling price per unit if the profit per unit is R3.If it wasdecided to increase fixed cost(admin exp) by 15% and directmaterial cost by R5, Calculate the amended:-Break-evenquantity-Break-even value-Safety Margin-The number of units to besold to achieve a profit of R340000