Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to...

  

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Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to calculate the following: 3.1.1 Break-even quantity 3.1.2 Margin of safety (in units) 3.1.3 Total Marginal Income and Net Profit/Loss, if 90% of the books are sold. INFORMATION Lucida Printers manufactures counter books. The following information was extracted from the budget for the year ended 31 May 2022: Sales Selling price per unit Variable manufacturing costs per unit Variable marketing costs per unit Fixed manufacturing overhead costs Fixed marketing and administration costs 60 000 units R50 R15 R10 R400 000 (4 marks) (3 marks) (4 marks) R200 000 3.2 Calculate the following from the information provided below: 3.2.1 The selling price per unit that will enable the company to break even. 3.2.2 The number of units that must be sold to earn a net profit of R1 196 800 if the selling price increases by R36 per unit and the variable costs increase by 10%. INFORMATION The following information was provided by Sabrina Limited for the only product that it manufactures: Fixed costs per annum Variable costs per unit Selling price per unit Expected sales R1 788 000 R320 R680 10 000 units (4 marks) (5 marks) Question 3 Answer the questions from the information provided. 3.1 Use the information provided below to calculate the following: 3.1.1 Break-even quantity 3.1.2 Margin of safety (in units) 3.1.3 Total Marginal Income and Net Profit/Loss, if 90% of the books are sold. INFORMATION Lucida Printers manufactures counter books. The following information was extracted from the budget for the year ended 31 May 2022: Sales Selling price per unit Variable manufacturing costs per unit Variable marketing costs per unit Fixed manufacturing overhead costs Fixed marketing and administration costs 60 000 units R50 R15 R10 R400 000 (4 marks) (3 marks) (4 marks) R200 000 3.2 Calculate the following from the information provided below: 3.2.1 The selling price per unit that will enable the company to break even. 3.2.2 The number of units that must be sold to earn a net profit of R1 196 800 if the selling price increases by R36 per unit and the variable costs increase by 10%. INFORMATION The following information was provided by Sabrina Limited for the only product that it manufactures: Fixed costs per annum Variable costs per unit Selling price per unit Expected sales R1 788 000 R320 R680 10 000 units (4 marks) (5 marks)

Answer rating: 100% (QA)

The company sold 10 000 units of its product last year at a selling price of R680 per unit It experi... View the full answer