Question 3 Study the information given below and answer each of the following questions independently: 3.1 Calculate the
Posted: Wed Jul 06, 2022 6:25 pm
Question 3Study the information given below and answer each of the followingquestions independently:3.1 Calculate the total Marginal Income and Net Profit/Loss if allthe tables are sold. (4 marks)3.2 Use the marginal income ratio to calculate the break-evenvalue. (4 marks)Calculate the new total Marginal Income and Net Profit/Loss, if anincrease in advertising expenseby R100 000 is expected to increase sales by 400 units.3.3 (4 marks)3.4 How many units must be sold if the company wishes to earn a netprofit of R298 920. (4 marks)3.5 Based on the expected sales volume of 2 400 units, determinethe sales price per unit (expressedin rands and cents) that will enable the company to breakeven.(4 marks)INFORMATIONSamcor Limited manufactures tables. The following information wasextracted from the budget for the year ended 30June 2022:
1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%