Hi Tech Ltd had the following Income Statement for the month of June: Sales of 500...

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Hi Tech Ltd had the following Income Statement for the month of June: Sales of 500 iPods @ R700 each Total Variable expenses Contribution Fixed expenses NET Income R350 000 165 000 185 000 90 000 R 95 000 1. Calculate the break-even point in units and Rands (5 marks) 2. What sales figure would be required to achieve a profit of R200 000? (5 marks) 3. What is the impact on profit if HiTech Ltd increases unit sales from the 500 to 550 by increasing their monthly advertising expenditure by R15 000? (5 marks) Hi Tech Ltd had the following Income Statement for the month of June: Sales of 500 iPods @ R700 each Total Variable expenses Contribution Fixed expenses NET Income R350 000 165 000 185 000 90 000 R 95 000 1. Calculate the break-even point in units and Rands (5 marks) 2. What sales figure would be required to achieve a profit of R200 000? (5 marks) 3. What is the impact on profit if HiTech Ltd increases unit sales from the 500 to 550 by increasing their monthly advertising expenditure by R15 000? (5 marks)

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1 To calculate the breakeven point in units divide the fixed expenses by the contribution margin per ... View the full answer