Whitmore Enterprises produces a single product. The following information for 2021 is available: Fixed manufacturing costs...

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Whitmore Enterprises produces a single product. The following information for 2021 is available: Fixed manufacturing costs R80 000 Variable manufacturing costs per unit R15 Selling price per unit R30 Marketing costs: Advertising Sales personnel's salaries and commission Admin costs: Salaries Other office costs Number of units produced and sold Required: 4.1. Discuss the concept 'contribution margin.' (5) 4.2. Calculate the break-even value in Rands. (5) R4 000 per month R5 000 per month and 10% of sales R12 000 per month R4 000 per month plus R2 per unit sold 15 000 4.3. Calculate the income to be expected on sales of R1 200 000. (5) 4.4 Calculate the sales revenue required to produce net income of R7 000. (5) 4.5. If fixed costs were to be increased by R 25 760, calculate the increase in sales revenue that would be required to cover the increase. (5) Whitmore Enterprises produces a single product. The following information for 2021 is available: Fixed manufacturing costs R80 000 Variable manufacturing costs per unit R15 Selling price per unit R30 Marketing costs: Advertising Sales personnel's salaries and commission Admin costs: Salaries Other office costs Number of units produced and sold Required: 4.1. Discuss the concept 'contribution margin.' (5) 4.2. Calculate the break-even value in Rands. (5) R4 000 per month R5 000 per month and 10% of sales R12 000 per month R4 000 per month plus R2 per unit sold 15 000 4.3. Calculate the income to be expected on sales of R1 200 000. (5) 4.4 Calculate the sales revenue required to produce net income of R7 000. (5) 4.5. If fixed costs were to be increased by R 25 760, calculate the increase in sales revenue that would be required to cover the increase. (5)

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41 Contribution margin This the amount available to cover the fixed costs and profit It is calculated as the difference between sales revenue and vari... View the full answer