Study the information provided below and calculate the following independently: 3.1. Total Marginal Income and Net...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Study the information provided below and calculate the following independently: 3.1. Total Marginal Income and Net Profit/Loss 3.2 3.3 3.4 3.5 Break-even value Margin of safety (expressed in units) if the budgeted sales volume is 10% below the forecasted figure. The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%. INFORMATION Ascot Ltd manufactures shirts. The following information was extracted from the budget for the month ended 28 February 2023: Sales Selling price per unit Direct material cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Sales commission Fixed manufacturing overhead costs Fixed selling and administrative costs 50 000 units R100 R30 R18 R7 R5 per unit sold R400 000 R200 000 Study the information provided below and calculate the following independently: 3.1. Total Marginal Income and Net Profit/Loss 3.2 3.3 3.4 3.5 Break-even value Margin of safety (expressed in units) if the budgeted sales volume is 10% below the forecasted figure. The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%. INFORMATION Ascot Ltd manufactures shirts. The following information was extracted from the budget for the month ended 28 February 2023: Sales Selling price per unit Direct material cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Sales commission Fixed manufacturing overhead costs Fixed selling and administrative costs 50 000 units R100 R30 R18 R7 R5 per unit sold R400 000 R200 000
Expert Answer:
Answer rating: 100% (QA)
Total Marginal Income and Net ProfitLossTo calculate the total marginal income we need to know the variable costs per unit which are the direct materi... View the full answer
Related Book For
Modern Advanced Accounting in Canada
ISBN: 978-1259087554
7th edition
Authors: Hilton Murray, Herauf Darrell
Posted Date:
Students also viewed these accounting questions
-
N balls labeled 1 through N are placed in Box 1 while a Box 2 is initially empty. At each time instant, one of the N balls is chosen (with equally probability) and moved to the other box. Let X [k]...
-
Prove that A n is simple for n 5, following the steps given. a. Show A n contains every 3-cycle if n 3. b. Show An is generated by the 3-cycles for n 3. c. Let r and s be fixed elements of {l, 2, ...
-
N sources of current with different emf's are connected as shown in Fig. 3.40. The emf's of the sources are proportional to their internal resistances, i.e. ε = aR, where a is an assigned...
-
The marketing department for an upscale retail catalog company wants to determine if there are differences in the mean customer purchase amounts across the available purchase sources (Internet,...
-
What provisions of GAAP (viz., FASB ASC 330-10-30, previously SFAS No. 151available at www.asc.fasb.org) pertain to the issue of end-of-period disposition of overhead variances? Be specific.
-
Efficiency can correspond to more than one distribution of well-being. Can the efficiency criterion be used to rank one distribution over another?
-
After a series of celebrated accounting debacles, Congress enacted the Sarbanes-Oxley Act of 2002, which introduced tighter regulation of the accounting industry under a new Public Company Accounting...
-
Wasserman Corporation issued 10-year bonds on January 1, 2011. Costs associated with the bond issuance were $160,000. Wasserman uses the straight-line method to amortize bond issue costs. Prepare the...
-
using deal and grove formula, Create a matlab code to show the General relationship for thermal oxidation of silicon using dry oxidation and wet oxidation. The solid line represents the general...
-
Assume that all assumptions of the single-index model hold, except that the covariance between residuals is a constant K instead of zero. Derive the covariance between the two securities and the...
-
An attractive, one-dimensional square well has depth V, as shown above. Which of the following best shows a possible wave function for a bound state? (A) (1) (D) (1)
-
Which is generally considered the more appropriate estimate of the risk-free rate: the yield on a short-term T-bill or the yield on a 10-year T-bond?
-
A companys preferred stock currently trades for $50 per share and pays a $3 annual dividend. Flotation costs are equal to 3% of the gross proceeds. If the company issues preferred stock, what is the...
-
Birmingham Automotive Supply Company entered into a contract with the Excel Construction Company to build a chain-link fence around the property of the auto supply company. Included in the contract...
-
A firm has common stock with D 1 = $3.00; P 0 = $30; g = 5%; and F = 4%. If the firm must issue new stock, what is its cost of external equity, r e ?
-
A firm has the following data: target capital structure = 25% debt, 10% preferred stock, and 65% common equity; tax rate = 40%; r d = 7%; r ps = 7.5%; and r s = 11.5%. Assume the firm will not issue...
-
While many compensation and promotion programs encourage competition and hard work, it does not foster collaboration, and can lead to distrust and disloyalty. As a consequence, many companies now...
-
Compare and contrast debt financing and equity financing as ways of starting a new business. Does one have an overall advantage over the other? What situation is more favorable to the use of debt...
-
In what way are an individuals pants with four pockets similar to a parent company with three subsidiaries? Explain, with reference to intercompany revenues and expenses.
-
Don Ltd. purchased 80% of the outstanding shares of Gunn Ltd. Before the purchase, Gunn had a deferred charge of $10.5 million on its balance sheet. This item consisted of organization costs that...
-
Required (a) Can any alternative to historical cost provide for fair presentation in financial reports or are the risks too great? Discuss. (b) Discuss the relative merits of historical cost...
-
The activity of a sample of the cesium isotope \({ }^{137} \mathrm{Cs}\) is \(2.0 \times 10^{8} \mathrm{~Bq}\). Many years later, after the sample has fully decayed, how many beta particles will have...
-
What is the activity in \(\mathrm{Bq}\) and in \(\mathrm{Ci}\) of a \(2.0 \mathrm{mg}\) sample of \({ }^{3} \mathrm{H}\) ?
-
The technique known as potassiumargon dating is used to date volcanic rock and ash, and thus establish dates for nearby fossils, like this 1.8 -millionyear-old hominid skull. The potassium isotope...
Study smarter with the SolutionInn App