Exercise 'R' Us is a local company that purchases bicycle parts and assembles them for resale...

Transcribed Image Text:

Exercise 'R' Us is a local company that purchases bicycle parts and assembles them for resale Each bicycle can be sold for R950 Exercise 'R' Us purchased 50 frames at a total cost of R22 500, 1 000 tyres at a total cost of R10 000, and 120 brakes at a total cost of R6 000. To assemble all these parts costs R50 per bicycle 31 Calculate the contribution per unit 32 How many units must Exercise 'R' Us sell in order to break even if their overheads amount to R150 000? 3.3 If Exercise 'R' Us invested R50 000 in net operating assets. how many bicycles must be sold to achieve a RONA of 20%? 3.4 If the selling price had to decrease by R100 due to economic conditions how many units would have to be sold to break even? (5) (2) (5) (3) Exercise 'R' Us is a local company that purchases bicycle parts and assembles them for resale Each bicycle can be sold for R950 Exercise 'R' Us purchased 50 frames at a total cost of R22 500, 1 000 tyres at a total cost of R10 000, and 120 brakes at a total cost of R6 000. To assemble all these parts costs R50 per bicycle 31 Calculate the contribution per unit 32 How many units must Exercise 'R' Us sell in order to break even if their overheads amount to R150 000? 3.3 If Exercise 'R' Us invested R50 000 in net operating assets. how many bicycles must be sold to achieve a RONA of 20%? 3.4 If the selling price had to decrease by R100 due to economic conditions how many units would have to be sold to break even? (5) (2) (5) (3)

Answer rating: 100% (QA)

To answer the questions lets calculate the relevant figures step by step a Contribution per unit The contribution per unit is the selling price per bi... View the full answer