REQUIRED:

Use the information provided below to answer the following questions independently:

1 If Kempster Limited decides on a profit objective of R400 000 , calculate the target sales volume.

2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit.

 

Transcribed Image Text:

INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R30 each: Variable manufacturing cost Fixed manufacturing cost Variable marketing cost Fixed marketing and administrative cost R14 per unit R100 000 20% of sales R40 000 INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R30 each: Variable manufacturing cost Fixed manufacturing cost Variable marketing cost Fixed marketing and administrative cost R14 per unit R100 000 20% of sales R40 000

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