Question: keep any inventory. The following data are available: Direct material per unit Total direct labour cost Variable manufacturing overheads per unit Units produced Total fixed
keep any inventory. The following data are available: Direct material per unit Total direct labour cost Variable manufacturing overheads per unit Units produced Total fixed manufacturing overheads Total fixed administration overheads Commission per unit sold Sales price per unit R12.50 R20000.00 R1.50 1000 R30 000.00 R15 000.00 (a) Calculate the number of units Buffy Limited should sell to achieve the desired return on investment. (b) Determine the number of units to be sold to achieve the desired retum on in-vestment if Buffy Limited decides to decrease commission on sales to 3\%. The decrease of the commission will have the effect of increasing fixed administar tion overheads by 10%. keep any inventory. The following data are available: Direct material per unit Total direct labour cost Variable manufacturing overheads per unit Units produced Total fixed manufacturing overheads Total fixed administration overheads Commission per unit sold Sales price per unit R12.50 R20000.00 R1.50 1000 R30 000.00 R15 000.00 (a) Calculate the number of units Buffy Limited should sell to achieve the desired return on investment. (b) Determine the number of units to be sold to achieve the desired retum on in-vestment if Buffy Limited decides to decrease commission on sales to 3\%. The decrease of the commission will have the effect of increasing fixed administar tion overheads by 10%
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