The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50 The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50 The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50 The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50 The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50 The budgeted information on the two business opportunities that Kopstra Industries is currently considering investing in is as follows: Sales Less: Costs Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs Opportunity 1 (based on 13 850 units produced) Total 975 450.00 (901 165.74) 225 103.85 263 371.50 142 565.77 45 020.77 225 103.85 74 284.26 Opportunity 2 (based on 14 125 units produced) Total REQUIRED: 1. Complete the cost analysis (round all workings to 2 decimal places). 2. Calculate and complete the break-even point in units for both opportunities. (Round your answer to the nearest unit) 3. Calculate and complete the break-even point in sales revenue for both opportunities (round your answer to the nearest rand). 975 450.00 (901 165.73) 157 572.69 175 581.00 427 697.31 90 041.54 50 273.19 74 284.27 1. Cost analysis Direct material Direct labour Fixed manufacturing overheads Sales commission Fixed administrative costs 2. The break-even point in units Formula: Calculation: R Answer: Type of cost Opportunity 1 Fixed cost / Marginal income per unit / (R Answer: 3. The break-even point in sales revenue R units Formula: Fixed cost / Marginal income ratio Calculation: / [(R R OR: 11522 units x 70.43 R 811 494 Please answer all parts of the question. - R Opportunity 1 - R Variable cost in total rand value >/R R R R R 533 496.12 Formula: Calculation: Answer: Opportunity 1 Variable cost per unit R R R R Answer: Opportunity 2 Fixed cost / Marginal income per unit units. Formula: Calculation: R 38.52 Fixed costs in total rand value / (R R R R -R R 367 669.62 Fixed cost / Marginal income ratio R / [(R Opportunity 2 OR: 12225 units x 69.06 = R 844 259 -R Variable cost in total rand value R R /R R R 423 195.23 Opportunity 2 Variable cost per unit R R R R 29.96 Fixed costs in total rand value R R R 477 970.50
Expert Answer:
Answer rating: 100% (QA)
1 Complete the cost analysis Type of Cost Opportunity 1 Opportunity 2 Variable cost ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
What are the key factors for future competitive success. List the common types of key success factors, and answer the following questions: On what basis do buyers of the industrys product choose...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
A square duct, 30 cm by 30 cm, is maintained at a constant temperature of 30oC and an airstream of 50oC and 1 atm is forced across it with a velocity of 6 m/s. Calculate the heat gained by the duct....
-
The management of Rosenquist Corp. is considering the effects of various inventory costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for...
-
Top Catering operates a chain of 10 hospitals in the Los Angeles area. Its central food-catering facility, TopStuff, prepares and delivers meals to the hospitals. It has the capacity to deliver up to...
-
What are the six basic types of behavioral interactions constructs?
-
Life cycle product costing. Gadzooks, Inc., develops and manufactures toys that it then sells through infomercials. Currently, the company is designing a toy robot that it intends to begin...
-
Going back to this week's recording, revise what you learnt about the doctrine of precedent. In the famous House of Lords case of Donoghue v Stevenson [1932] AC 562, the Court determined that the...
-
The bookkeeper of Triad Co. gathered the following data from individual employee earnings records and daily time cards. Your task is to complete a payroll register on August 8. Assume the following:...
-
STEP 1: Calculate their yearly deductions. STEP 2: Calculate their annual taxable income. STEP 3: Calculate their total federal income tax using 2015 federal tax rates Aishah's gross pay was $115 000...
-
Why is it necessary to treat previous process cost as a separate element of cost in a process costing system?
-
What are the four primary elements of the database approach?
-
How would you manage an employee who misses performance goals?
-
What is the flat-file model?
-
(a) Describe the distinguishing characteristics of production systems where: (i) job costing techniques would be used, and (ii) process costing techniques would be used. (b) Job costing produces more...
-
The function f(x) = (e^x e ^x)/ 2 is one to one. Plot the graph of y = f(x) and its inverse using MATLAB on the same set of axes. The graph should contain an appropriate title and labels for its...
-
The cash records of Holly Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $720. During July, the general ledger account Cash...
-
When Congress was considering a bill to impose quotas on imports of textiles, shoes, and other products, the late Milton Friedman, a Nobel Prize-winning economist, made the following comment: "The...
-
Can economic analysis provide a final answer to the question of whether the government should intervene in markets by imposing price ceilings and price floors? Briefly explain.
-
When will the private cost of producing a good differ from the social cost? Give an example. When will the private benefit from consuming a good differ from the social benefit? Give an example.
-
True or False. The Rayleigh-Ritz method assumes that the solution is a series of functions that satisfy the boundary conditions of the problem.
-
Free end a. Bending moment \(=0\); shear force equals the b. Deflection \(=0\); slope \(=0\) c. Deflection \(=0\); bending moment \(=0\) d. Bending moment \(=0\); shear force \(=0\)
-
The boundary condition corresponding to the free end of a bar in longitudinal vibration is given by a. \(u(0, t)=0\) b. \(\frac{\partial u}{\partial x}(0, t)=0\) c. \(A E \frac{\partial u}{\partial...
Study smarter with the SolutionInn App