Cook4life Ltd manufactures pots. The following information was extracted from the budget for the month ended 31
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Question:
Cook4life Ltd manufactures pots. The following information was extracted from the budget for the month ended 31 December 2022:
Expected sales are 3 000 units at R300 per unit. The direct materials cost, direct labour cost and variable manufacturing overheads cost are estimated at R210 000, R150 000 and R90 000 respectively. Fixed manufacturing overheads and fixed administration costs are expected to total R160 000 and R80 000 respectively. Variable selling and administration costs are estimated at 10% of sales
Calculate each of the following independently from the information provided below
Break even value using the contribution margin ratio
Expert Answer:
Budgeted Income Statement Budgeted Income Statement Amount in R Sales 3 000 Units R30... View the full answer
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