A company is about to introduce a new product to the market. The cost data is...

 

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A company is about to introduce a new product to the market. The cost data is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Variable overhead cost per unit Total fixed costs Budgeted production and sales 7000 units Maximum possible production 10000 units REQUIRED N$ 280 80 45 50 10500 a) Calculate the budgeted profit. [3] b) Calculate the break-even point in units. [3] c) Calculate the profit if an extra N$30000 was spent on marketing and 6500 units are made and sold. (3) d) Calculate the profit if the budgeted price was increased to N$265 and 5500 units are made and sold. (3) e) Calculate the profit if the budgeted price was decreased to N$205 and 6800 units are made and sold. (3) f) Sketch a break-even diagram/chart based on the budgeted data. (6) A company is about to introduce a new product to the market. The cost data is as follows: Selling price per unit Direct material cost per unit Direct labor cost per unit Variable overhead cost per unit Total fixed costs Budgeted production and sales 7000 units Maximum possible production 10000 units REQUIRED N$ 280 80 45 50 10500 a) Calculate the budgeted profit. [3] b) Calculate the break-even point in units. [3] c) Calculate the profit if an extra N$30000 was spent on marketing and 6500 units are made and sold. (3) d) Calculate the profit if the budgeted price was increased to N$265 and 5500 units are made and sold. (3) e) Calculate the profit if the budgeted price was decreased to N$205 and 6800 units are made and sold. (3) f) Sketch a break-even diagram/chart based on the budgeted data. (6)