Question: Fead the following case study and answer the questions that follow: TRENDY MANUFACTURERS Trenty Manutacturers commenced operabions during January 2019. It produces designer ladies dresses
Fead the following case study and answer the questions that follow: TRENDY MANUFACTURERS Trenty Manutacturers commenced operabions during January 2019. It produces designer ladies dresses using diract materials that are imported th. italy. During 2019 the production and sales volumes were 2400 dresses and 2000 dresses respectively. Fixed manufacturing costs and variable manufacturing costs totalled R672000 and R2880000 respectively. Fixed selling and administrative costs amounted to R432 000 whilst variable selling costs amounted to Rsis 000 Dung 2020 the groduction increased to 3000 dresses. The direct materials were imported at a cost of RT00 per dress 3is. -pert eutes of RSO per dress. The labour cost of the personnel who were involved in making the dresses was R393 per dress. Cher variable manufacturing costs totaled R600 000 . Fixed manufacturng costs increased by R65 Det The se-at seling proe per dress was R3 000 . A sales commission of R50 per dress sold regardess of the selling poo, wat puid to the st espessons for the frst time. Fised selling and administrative cosss increased by R38 000 whil kadeit veling ossts increased by R2 per unt sold. By the end of November 2020,70% of the dresses that weve a apele for bate sere sold. The remaing dresses were qut up for sale diring Decenber 2020 at 605 of the norea
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