Fixed costs per annum P60 000 Unit selling price 20 Unit variable cost 10 Relevant range 4 000–12 000 units REQUIRED: Calculate the following: 

a. Break-Even Point in 

b. Units to be sold to obtain the desired target profit of P60 000 

c. Percentage margin of safety

ABC (Pvt) ltd. is a manufacturing company based in Gaborone. Its employees are paid P80 per hour. Employee entitlements: Annual leave 15 working days Paid public annual holidays 12 Idle time allowed 5% of available clock time NB: ABC (Pvt) ltd operates 5 days per week which equates to 40 hours a week and there are 52 weeks in a year. 

Required: 

i. Calculate the annual productive time 

ii. Define Idle time 

Joint products P and Q result from a single manufacturing process. Common costs added up to P192,000 in a period when output was 2,500 units of product P and 3,000 units of product Q. Products P and Q can be sold at the split-off point for P40 and P80 per unit respectively. Calculate the amount of the common process costs that will be apportioned to product Q based on physical measurement. 

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