Question 3Study the information given below and answer:3.2 Use the marginal income ratio to calculate the break-evenvalue.INFORMATIONSamcor Limited manufactures tables. The followinginformation was extracted from the budget for the year ended30 June 2022:2.3.4.5.Total production and salesSelling price per tableVariable manufacturing costs per table:Direct materialDirect labourOverheadsFixed manufacturing overheadsOther costs:Fixed marketing and administrative costsSales commission2 400 unitsR1 200R288R192R96R216 960R144 0005%

Marginal income : It is the profit in marginal costing. Marginal income refers to the excess of…

30 June 2022: 1. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material 2. 3. 4. 5. Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%

30 June 2022: 1. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material 2. 3. 4. 5. Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 19BEA: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period That...

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Question 3 Study the information given below and answer: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. Selling price per table 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
Prepare an income statement of Mary's manufacturers the year ended 31 December using the: 1. Marginal costing method. 2. Absorption costing method.
QUESTION 2 (a) Explain the following terms: (1) margin of safety (ii) contribution margin (b) contribution to sales ratio (ii) (iv) (c) cost behaviour in a linear function (v) (d) break even analysis The Income statement for the year ending 31 December 2020 for Hagemaru Manufacturing is as follows: RM'000 RM'000 Sales (22,000 units) 3,300 Direct materials 726 Direct labour 374 Production overheads 798 (1,898) Gross profit 1,402 Selling overheads (1,042) Net profit 360 The variable production overheads were RM9 per unit while the variable selling overheads were RM11 per unit. Required: (i) Calculate contribution margin per unit. (i) (ii) Calculate breakeven point in units and in RM. (i) Calculate margin of safery in units for the latest financial year. The company has a capacity of 30,000 units per year. Management is not happy with the financial performance for the last year, and two courses of (iv) (v) (vi) action for the coming year were proposed in the recent management meeting:…
Philadelphia Company has the following information for March: Sales Variable cost of goods sold Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrating expenses Determine the March: a. Manufacturing margin b. Contribution margin c. Operating income for Philadelphia Company $467,602 200,533 75,878 49,308 33,201 000
Need detail explanation Q. Find the breakeven point and provide the income statement at break even. ** attached image
Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Use the marginal income ratio to calculate the break-even value. INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%
Question 3 Study the information given below and answer: 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2. 3. 4. 5. Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%
Philadelphia Company has the following information for March: $490,346 214,812 76,688 52,187 31,129 Sales Variable cost of goods sold Fixed manufacturing costs Variable selling and administrative expenses Fixed selling and administrative expenses Determine the March: a. Manufacturing margin b. Contribution margin c. Operating income for Philadelphia Company LA LA LA 000
Answer c and d alone
A. Manufacturing margin? b. Contribution margin? C. Operating income for PhiladelPho's company ?
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