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Busta Limited plans to manufacture bar fridges and the following information is applicable: Estimated sales for the year Estimated...

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Busta Limited plans to manufacture bar fridges and the following information is applicable: Estimated sales for the year Estimated costs for the year: Variable costs Direct Material Direct Labour Variable Manufacturing Cost Selling expenses Factory overheads (all fixed) Administrative expenses (all fixed) 5 000 units at R3 400 each R520 per unit R350 per unit R110 per unit 6% of selling price per unit sold R625 000 R462 000 REQUIRED: 1.1 Calculate the total net profit for the estimated figures. 1.2 Calculate the break-even quantity 1.3 Calculate the break-even value 1.4 Calculate the break-even value using the marginal income ratio. 1.5 Calculate the target sales volume to achieve a profit of R920 500.. 1.6 Calculate the new break-even quantity and value if the selling price is increased by 12% 1.7 Calculate the margin of safety in units at the original budgeted volume and price

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1 1 Income Statement Sales Less Variable expenses Direct materials Direct labor Variable manufacturi View the full answer


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Financial Accounting

Financial Accounting

ISBN: 978-0078111020

7th Edition

Authors: Libby, Libby, Short

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Posted Date: November 17, 2022 00:41:50
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