Question: REQUIRED Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all
REQUIRED Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.2 Calculate the break-even value using the marginal income ratio. (4 marks) (4 marks) 3.3 Calculate the number of units that must be manufactured and sold if the company wishes to earn a net profit of R390 000. (4 marks) 3.4 Based on the expected sales volume of 2 500 units, determine the sales price per unit that will enable the company to earn a net profit of R650 000. (4 marks) 3.5 Calculate the new total Marginal Income if a decrease in the selling price by R100 per unit is expected to increase sales by 400 units. (4 marks) INFORMATION Nysa Limited manufactures tables. The following information was extracted from the budget for the year ending 30 June 2018: 1. Total production and sales 2 500 units 22 2. Inventory on 01 July 2017 Nil 2. Selling price per table R2 000 3. Variable production cost per table: Direct materials R250 Direct labour Overheads 4. Fixed production overhead costs 5. Other costs: R150 R100 R240 000 Fixed marketing and administration Sales commission 6. Inventory on 30 June 2018 R280 000 10% of selling price Nil
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
