Use the information provided below to answer each of the following questions independently:
2.1
Calculate the break-even quantity.
(2 Marks)
2.2
Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio.
(4 Marks)
2.3
Determine the selling price per unit if a net profit of R624 600 is desired.
(4 Marks)
INFORMATION
The following information was extracted from the budget of Mary’s Manufacturers for the period July to December 2021:
1.
Total production and sales
2 300 units
2.
Selling price per unit
R200
3.
Variable manufacturing costs per unit:
Direct materials
R60
Direct labour
R40
Overheads
R20
4.
Fixed manufacturing overheads
R200 000
5.
Other costs:
Fixed marketing and administrative costs
R100 000
Sales commission
10% of sales
2.1
Margin profit:
"200*0.9-60-40-20=60"
the break-even quantity:
"\\frac{200\\ 000+100\\ 000}{60}=5\\ 000" units
2.2
the sales value required to achieve a net profit of R150 000:
"\\frac{200\\ 000+100\\ 000+150\\ 000}{60}=7\\ 500" units
2.3
"\\frac{200\\ 000+100\\ 000+624\\ 600}{x*0.9-60-40-20}=2\\ 300"
"x=580" R
Comments
Thank you, this (#203489) helped a great deal.
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