You have been requested to perform a sensitivity analysis for a company manufacturing hand -held sanitisers. An
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Question:
You have been requested to perform a sensitivity analysis for a company manufacturing hand -held sanitisers. An agreement was reached with the relevant union on a 6% increase for 2021, and imported chemicals will cost 10% more in 2021. The sales price will be increased by 5% in 2021, however the forecast for sales will remain at 75 000 units.
The following information is available for 2020:-
| Cost of plastic containers per unit | R25,00 |
| Cost of imported chemicals per unit | R50,00 |
| Cost of labour per unit | R25,00 |
| Current sales price per unit | R140,00 |
| Forecast sales for 2021 | 75 000 units |
You are required to calculate the Net Profit margins for 2020 and 2021 and comment on your findings
Expert Answer:
SOLUTION The requirement is to compute the profit margin for 2020 and 2021 and comment The condition... View the full answer
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