Calculate the following from the information provided below: 3.1.1 Break-even value using the marginal income ratio 3.1.2 Margin of safety (in units) 3.1.3 Break-even quantity if a sales commission of 20% is introduced. INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the management accountant: Sales at R250 per unit R1 000 000 Variable costs R600 000 Fixed manufacturing, administrative and marketing costs R250 000 All the units produced are expected to be sold
Calculate the following from the information provided below: 3.1.1 Break-even value using the marginal income ratio 3.1.2 Margin of safety (in units) 3.1.3 Break-even quantity if a sales commission of 20% is introduced. INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the management accountant: Sales at R250 per unit R1 000 000 Variable costs R600 000 Fixed manufacturing, administrative and marketing costs R250 000 All the units produced are expected to be sold
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate the following from the information provided below:
3.1.1 Break-even value using the marginal income ratio
3.1.2 Margin of safety (in units)
3.1.3 Break-even quantity if a sales commission of 20% is introduced.
INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the
All the units produced are expected to be sold
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