4.1 Study the information given below and answer the following questions independently INFORMATION: Banco Limited produces a single product. The following budgeted information for 2021 is made available: Variable manufacturing costs per unit R85.24 Selling price per unit R246 Fixed manufacturing costs R4 552 000 Marketing Costs R648 000 plus 6% of sales Administration costs R320 000 plus R8 per unit sold The number of units expected to be produced and sold during 2021 is 45 000. 4.1.1 Calculate the expected break- even quantity for 2021 4.1.2 Calculate the sales volume required to achieve an operating profit of R2 4848 000 4.1.3 Suppose Banco Limited is considering a decrease of R18 per unit in the selling price of the product, With the expectation that this would increase the sales volume by 10%. Is this a good idea? Motivate your answer

4.1 Study the information given below and answer the following questions independently INFORMATION: Banco Limited produces a single product. The following budgeted information for 2021 is made available: Variable manufacturing costs per unit R85.24 Selling price per unit R246 Fixed manufacturing costs R4 552 000 Marketing Costs R648 000 plus 6% of sales Administration costs R320 000 plus R8 per unit sold The number of units expected to be produced and sold during 2021 is 45 000. 4.1.1 Calculate the expected break- even quantity for 2021 4.1.2 Calculate the sales volume required to achieve an operating profit of R2 4848 000 4.1.3 Suppose Banco Limited is considering a decrease of R18 per unit in the selling price of the product, With the expectation that this would increase the sales volume by 10%. Is this a good idea? Motivate your answer

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Note: for credit you must show your calculations for this problem. The Magenta Company has provided the following information:Planned Production: 220,000 UnitsActual Production: 250,000 Units Selling price per unit $4.00Variable cost per unit $2.00Total fixed costs $220,000What is the Budgeted Net Operating Income using a Flexible Budget Methodology? View keyboard shortcuts EditViewInsertFormatToolsTable 12pt Paragraph
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6. Prepare a budgeted income statement using the information shown. Sales units 84,000 22 Sales price per unit Uncollectible expense Direct material per unit Direct labor hours per unit Direct labor rate per hour Manufacturing overhead Variable sales and administration expenses per unit sold Fixed sales and administration expenses 1% $4 $ 1.50 0.8 19 $14,000 $ 2.10 $23,000 Тахes 15%* *of income before taxes %24
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1. wHAT IS THE CASH PAYMENTS IN QUARTER 3 2. HOW MUCH IS THE TOTAL MANUFACTURING OVERHEAD BUDGET 2023?
3.1 REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity. 3.1.2 Break-even value using the marginal income 3.1.3 Margin of safety 3.1.4 Total Marginal Income and Net Profit/Loss if the sales price is reduced to R90 per unit.INFORMATION Dynamo Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales volume 20 000 units Selling price per unit R100 Variable manufacturing cost per unit R50 Variable marketing cost per unit 10% of the unit selling price Fixed manufacturing cost R400 000 Fixed administration and marketing costs R200 000
Q2: The following monthly budgeted data are available for a wholesale company: Product Product Product A B с $800,000 $400,000 $200,000 640,000 240,000 140,000 $160,000 $160,000 $60,000 Sales Variable expenses Contribution margin The budgeted total fixed expense is $ 150,000. Required: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?
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During the current year, OutlyTech Corp. expected to sell 84 000 telephone switches. Fixed costs for the year were expected to be R16 080 000, the unit sales price was budgeted at R900, and unit variable costs were budgeted at R600. OutlyTech's margin of safety (MOS) in sales Rands is: A. R59 520 000 B. R25 200 000 C. R91 680 000 D. R27 360 000
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Use the information given below to calculate each of the following independently 3.3 Break-even quantity if the selling price drops by 10% INFORMATIONSlumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS