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 Variable costs Fixed manufacturing, administrative and marketing costs All the units produced are expected to be sold. R1 000 000 R600 000 R250 000
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 Variable costs Fixed manufacturing, administrative and marketing costs All the units produced are expected to be sold. R1 000 000 R600 000 R250 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer in text form please, without image)
![REQUIRED
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
Variable costs
Fixed manufacturing, administrative and marketing costs
All the units produced are expected to be sold.
R1 000 000
R600 000
R250 000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F70b9b44a-18b6-45fd-80c7-7ba6a86eadcc%2Ff370dfab-9cdf-45e8-8b1c-799f978b74cd%2Fvim1jlp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:REQUIRED
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
Variable costs
Fixed manufacturing, administrative and marketing costs
All the units produced are expected to be sold.
R1 000 000
R600 000
R250 000
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