ESTIMATED SALES 2000 UNITS, SELLING PRICE R800, VARIABLE MANUFACTURING COST PER UNIT R420, VARIABLE MANUFACTURING COST SALES
Question:
ESTIMATED SALES 2000 UNITS, SELLING PRICE R800, VARIABLE MANUFACTURING COST PER UNIT R420, VARIABLE MANUFACTURING COST SALES COMMISSION R60, FIXED MANUFACTURING OVERHEAD R330 000, FIXED ADMINISTRATION EXPENSES R150 000. CALCULATE EXPECTED TOTAL MARGINAL INCOME AND NET PROFIT/LOSS. CALCULATE BREAK-EVEN QUANTITY. CALCULATE BREAK-EVEN VALUE, IF THE FIXED COST ARE 10% GREATER THAN ANTICIPATED. CALCULATE THE NUMBER UNITS REQUIRED TO BREAK-EVEN IF THE SELLING PRICE IS REDUCED BY R40 & SALES COMMISSION IS CALCULATED AT 10% OF THE SELLING PRICE. SUPPOSED JEENA MANUFACTURING WANT TO MAKE A PROVISION FOR AN INCREASE IN ADVERTISING BY R30 000 & A DROP IN THE SELLING PRICE BY R100 PER UNIT WITH THE EXPECTATION THAT SALES WILL INCREASE BY 400 UNITS,WILL PROFITABILITY IMPROVE? MOTIVATE THE ANSWER WITH RELEVANT CALCULATIONS