Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise,

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Green Pty Ltd Manufactures A Standard Type Of Tricycle The Following Are The Budgeted Costs Unless Stated Otherwise 1 (42.89 KiB) Viewed 37 times

Green (Pty) Ltd manufactures a standard type of tricycle. The following are the budgeted costs: Unless stated otherwise, all amounts exclude VAT. Raw materials used R950 per unit produced Direct labour R300 per unit produced Factory foreman's wages R4 800 per month Rental of factory R7 200 per month Rates and taxes R1 550 per month Sales representatives' commission R200 per unit sold Advertising costs R15 500 per month Variable indirect materials used R70 per unit produced Insurance on factory R990 per month Quality controller R350 per month The business intends to sell the manufactured tricycles at R3 000 each plus VAT @ 15%.
Q.2.8 How many units needs to be sold in order to make a profit of at least R100 000 per (4) month.