Question: Question 8 REQUIRED Study the information given below and answer the following questions independently: 3 . 1 Use the marginal income ratio to calculate the

Question 8REQUIRED
Study the information given below and answer the following questions independently:
3.1 Use the marginal income ratio to calculate the break-even value.
3.2 Calculate the sales volume required to achieve a net profit of R1740000.
3.3 Calculate the total Marginal Income and Net Profit/Loss if an increase in
advertising expense by R200000 is expected to increase sales by 3000 units.
3.4 Calculate the margin of safety (in units) if the variable manufacturing costs
increase by 10% and fixed manufacturing overheads cost increase by R24450.
3.5 Based on the expected sales volume of 40000 units, determine the sales price
per unit that will allow the company to break even.
INFORMATION
Peryton Limited produces only one product. Expected sales are 40000 units per year and sales price
is R150 per unit. The relevant costs are as follows:
 Question 8REQUIRED Study the information given below and answer the following

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!