Answer to Question #273610 in Other for Tee

Question

QUESTION ONE INFORMATION

Busta Limited plans to manufacture bar fridges and the following information is applicable:

 Estimated sales for the year Estimated costs for the year: Variable costs

Direct Material

Direct Labour

Variable Manufacturing Cost Selling expenses

Factory overheads (all fixed) Administrative expenses (all fixed)

REQUIRED:

5 000 units at R3 400 each

R520 per unit

R350 per unit

R110 per unit

6% of selling price per unit sold

        R625 000 R462 000

  1.1 Calculate the total net profit for the estimated figures.

1.2 Calculate the break-even quantity

1.3 Calculate the break-even value

1.4 Calculate the break-even value using the marginal income ratio.

1.5 Calculate the target sales volume to achieve a profit of R920 500..

1.6 Calculate the new break-even quantity and value if the selling price is increased by 12% 1.7 Calculate the margin of safety in units at the original budgeted volume and price

Answer 1

Dear Tee, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order