A Windhoek based company manufactures and sells small battery operated toys to local customers. The company's...

Transcribed Image Text:

A Windhoek based company manufactures and sells small battery operated toys to local customers. The company's normal production capacity is 20 000 toys per month. Current production and sales is 10 000 toys per month. An analysis of cost for 10 000 toys is shown below: Direct material 300 000 Direct labour 240 000 Manufacturing overhead (50% fixed) 160 000 Miscellaneous supplies 5 000 Selling and administration (80% fixed) 250 000 Required: Determine the selling price per unit using the following methods: (a) A margin of 25% on manufacturing cost (5 marks) (b) A mark-up of 30% on total variable cost (5 marks) (c) A margin of 20% on full cost (5 marks) A Windhoek based company manufactures and sells small battery operated toys to local customers. The company's normal production capacity is 20 000 toys per month. Current production and sales is 10 000 toys per month. An analysis of cost for 10 000 toys is shown below: Direct material 300 000 Direct labour 240 000 Manufacturing overhead (50% fixed) 160 000 Miscellaneous supplies 5 000 Selling and administration (80% fixed) 250 000 Required: Determine the selling price per unit using the following methods: (a) A margin of 25% on manufacturing cost (5 marks) (b) A mark-up of 30% on total variable cost (5 marks) (c) A margin of 20% on full cost (5 marks)

Answer rating: 100% (QA)

219 PM New Section 1 HOME Computation of Particulars Direct mater... View the full answer