Question: QUESTION 4 (20 Marks ) REQUIRED Study the information provided below and answer the following questions independently : 4.1 Calculate the expected total marginal income

QUESTION 4 (20 Marks ) REQUIRED Study the
QUESTION 4 (20 Marks ) REQUIRED Study the information provided below and answer the following questions independently : 4.1 Calculate the expected total marginal income and net profit /loss (4 marks ) 4.2 Calculate the break -even quantity (4 marks ) 4.3 Calculate the break -even value , if the fixed costs are 10 % greater than anticipated (4 marks ) 4.4 Calculate the number units required to break -even if the sales commission is replaced by an increase in salaries of R600 000 (4 marks ) 4.5 Suppose Zinge Manufacturers wants to make provision for an increase in advertising of R180 000 and a drop in the selling price by R50 per unit , with the expectation that sales will increase by 800 units . Will profitability improve ? Motivate your answer with the relevant calculations (4 marks ) INFORMATION Zinge Manufacturers plans to start Project Q and the following budgeted information is applicable to the project for the first financial year Estimated sales for the financial year 10 000 units Selling price per unit R800 Direct materials cost per unit R200 ct labour R130 Variable manufacturing overheads cost per unit R170 Fixed manufacturing overheads R800 000 Fixed selling and administrative expenses R700 000 Sales commission per unit R100

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