Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. 3.4 How many units must be sold if the company wishes to earn a net profit of R298 920.    Using the below information answer the above questions

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense
by R100 000 is expected to increase sales by 400 units.

3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 

 

Using the below information answer the above questions

 

 

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

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Trading
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education