Cardo Ltd plans to manufacture a new product and the following information is applicable: Estimated sales for

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Question:

Cardo Ltd plans to manufacture a new product and the following information is applicable: Estimated sales for the year 20209500 units at R100 each estimated sales for the year 2020Direct materialR20 per unit direct labourR6 per unit factory overheads (all fixed)R45000 per annumSelling expenses15% of sales administrative expenses (all fixed)R27000 per annum

Required

Calculate the break-even quantity.

Calculate the break-even value.

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

Calculate the selling price per unit if the profit per unit is R3. If it was decided to increase fixed cost(admin exp) by 15% and direct material cost by R5,

Calculate the amended:-Break-even quantity-Break-even value-Safety Margin-The number of units to be sold to achieve a profit of R340000.