Algee Ltd plans to manufacture kettles and the following information is applicable:Estimated sales for the year 20.15Estimated costs for the year 20.15Direct material14 000 units at R80 eachR24 per unitDirect labourFactory overheads (all fixed)Selling expensesAdministrative expenses (all fixed)R4 per unitR48 000 per annum30% of salesR78 000 per annum3.1 Calculate the break-even quantity3.2 Calculate the break-even value using the marginal income ratio.3.3 Calculate the selling price per unit if the profit per unit is R4.3.4 Calculate the new break-even quantity and value if selling price is increased by 10%.3.5 Calculate the selling price if 14 000 units provide an operating profit of RO after anadditional advertising expense of R54 000

Step 1: 3.1 Break-even quantity To calculate the break-even quantity, we need to determine the fixed…

Answered: Algee Ltd plans to manufacture kettles…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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