Fully charged Limited produces solar power bank chargers. The regular selling price is R400 per unit....

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Fully charged Limited produces solar power bank chargers. The regular selling price is R400 per unit. The variable cost of goods sold amounts to R 290 and normal monthly production is 2.000 chargers. Average fixed manufacturing cost is R120 000 per month. Selling and administrative costs are fixed and amount to R30 000 per month. 1.1 Due to the load shedding problem which South Africa is facing the company expects to sell more power banks this month. How many units do they need to sell to break even and achieve a profit of R30 000? 1.2 Full charged Limited's marketing team has established that the demand for the power bank chargers is likely to increase in the following month. Assume the selling price has increased by 10% and the contribution margin ratio is 40%. What is the variable cost per power bank? Fully charged Limited produces solar power bank chargers. The regular selling price is R400 per unit. The variable cost of goods sold amounts to R 290 and normal monthly production is 2.000 chargers. Average fixed manufacturing cost is R120 000 per month. Selling and administrative costs are fixed and amount to R30 000 per month. 1.1 Due to the load shedding problem which South Africa is facing the company expects to sell more power banks this month. How many units do they need to sell to break even and achieve a profit of R30 000? 1.2 Full charged Limited's marketing team has established that the demand for the power bank chargers is likely to increase in the following month. Assume the selling price has increased by 10% and the contribution margin ratio is 40%. What is the variable cost per power bank?

Answer rating: 100% (QA)

Lets start by calculating the information for the current month 11 BreakEven and Profit Calculation Breakeven point in units can be calculated using t... View the full answer