Question: This is the complete question. I'm unable to resolve it. MBA4807 OCTOBERINOVEMBER 2017 (15 marks) Questlon 2 The sales manager of your company wants to

 This is the complete question. I'm unable to resolve it. MBA4807

This is the complete question. I'm unable to resolve it.

MBA4807 OCTOBERINOVEMBER 2017 (15 marks) Questlon 2 The sales manager of your company wants to introduce a new leather handbag in the m approaches you to assist him in calculating the selling price as well as the number of handbags to sell to break-even He provides you with the following information Leather 2 meters per handbag Leather being imported at the cost of R9,200 per 150m roll Labour Cutting and Sttching 3 hours per handbag Labour rate is R75,00 per hour of matenal Supervisor salary Import cost Delivery cost R9,500 per month R1200 per load of 4 rolls of leather R1,500 per load A load consists of 16 handbags Accountant Salary R8,500 per month Rent R5,000 per month Rent is being allocated according to floor space 75% of the floorspace occupied by the uction Adm?n?stration cost R10,500 per month Depreciatiorn The company has 2 (two) sewing machines at the cost of R8,560 per machine Depreciation is calculated at 20% per annum on the straight-line method Additional notes The company is a pnce setter and seling pnce s calculated as mark-up of 150% on variable cost per unt Tax rate is 30% . Required: 1 Calculate tho selling pnce per handbag 2 Calculate the break-even (in number) of handbags to be sold 3 Calculate the number of handbags to be sold if the company wants to eam a proft after tax of 10% of the total sales

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