Question: Support levels Super Standard Basic Cost ( R ) per contract Cost ( R ) per contract Cost ( R ) per contract Annual fee

Support levels Super Standard Basic Cost (R) per contract Cost (R)per contract Cost (R) per contract Annual fee 1000750400 Annual variable costs 450250170 QUESTION 3: 122 marksl Sizwe Ltd provides three different levels of customer service support for one of its software products. The following data relate to these three levels of support: 500000230 The total annual fixed costs are budgeted to be R1200000. Assume that the number of customer service support contracts sold are in the proportion: Super =20% Standard =30% Basic =50% Required: NB: Round off all calculations to 2 decimal places. Assuming a constant sales mix, calculate: 3.1 The weighted average contribution per unit. 3.2 The breakeven point in units. 3.3 The breakeven in units (for each contract).3.4 The breakeven point in rand (for each contract).3.5 The margin of safety in rands. 3.6 Th margin of safety as a percentage.

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!