Brait Limited produces a single product and forecasted the following for the first three months of...
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Brait Limited produces a single product and forecasted the following for the first three months of the year:
The company's policy is to maintain closing inventory at a level of 50% of the following months forecasted sales.
Material and labour requirements are as follows:
2 kg per unit @ R50 per
3 hours per unit
Material inventory levels were as follows:
The total material purchase cost for January is:
1300 Goldfields Limited intends purchasing a new machine to replace an existing machine. The new machine will have a
purchase price of R 1 200 000. Transport and installation costs for the new machine will amount to an additional
R120 000. The new machine will result in an increase in working capital of R160 000.
The old machine was purchased five years ago at a cost of R800 000. The machine was depreciated over its useful life
of five years to a NIL book value. The old machine is expected to be sold as scrap for R60 000. At the time of its
purchase the old machine required an increase in working capital of R80 000. The company is subject to a 28% tax
The initial investment for the replacement project is:
Answer rating: 100% (QA)
1 Given Information As per the given information Sales Units Jan 2200 Feb 2400 March 2600 C...View the full answer