BREAK-EVEN ANALYSIS: 2.1) Air-Speration manufactures a particular industrial fan (Majax-2) which sells for R4 000 per...
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BREAK-EVEN ANALYSIS: 2.1) Air-Speration manufactures a particular industrial fan (Majax-2) which sells for R4 000 per unit. Variable costs amount to R1 500 per unit and the fixed expenses for the year amounts to R1 250 000. During the year, 750 units were sold by this company. You are required to calculate the following: a) fill in and complete the Contribution Income Statement 2.2) From the information obtained in (2.1) calculate: a) the break-even point in units & Rands b) the margin of safety in units & Rands c) the contribution ratio BREAK-EVEN ANALYSIS: 2.1) Air-Speration manufactures a particular industrial fan (Majax-2) which sells for R4 000 per unit. Variable costs amount to R1 500 per unit and the fixed expenses for the year amounts to R1 250 000. During the year, 750 units were sold by this company. You are required to calculate the following: a) fill in and complete the Contribution Income Statement 2.2) From the information obtained in (2.1) calculate: a) the break-even point in units & Rands b) the margin of safety in units & Rands c) the contribution ratio
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Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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