Question: Senzo Ltd makes two products - P1 and P2 - budgeted details of which are as follows: P1 (R) 10 P2 (R) 8 3.50 Selling

 Senzo Ltd makes two products - P1 and P2 - budgeted

Senzo Ltd makes two products - P1 and P2 - budgeted details of which are as follows: P1 (R) 10 P2 (R) 8 3.50 Selling price Cost per unit: Direct material Direct labour Variable overhead Fixed overhead Profit per unit 1.50 4 1 0.40 1.0 0.60 1.20 3.20 1.60 Budgeted production and sales for the year ended 28 February 2018 are: P1:10 000 units P2 : 12 500 units The fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also includes specific fixed overheads totaling R2500. If only product P1 were to be made, how many units to the nearest unit) would need to be sold in order to achieve a profit of R60 000 each year? [1]units

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