Calculate the total net profit for the estimated figures. 2. Calculate the break-even quantity 3. Calculate the break-even value
Calculate the total net profit for the estimated figures. 2. Calculate the break-even quantity 3. Calculate the break-even value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. Calculate the total net profit for the estimated figures.
2. Calculate the break-even quantity
3. Calculate the break-even value
4. Calculate the break-even value using the marginal income ratio.
5. Calculate the target sales volume to achieve a profit of R920 500..
6. Calculate the new break-even quantity and value if the selling price is increased by 12%
7. Calculate the margin of safety in units at the original budgeted volume and price
Transcribed Image Text:1.1
Per unit
Units
total
R
R
Transcribed Image Text:Busta Limited plans to manufacture bar fridges and the following information is applicable:
Estimated sales for the year
5 000 units at R3 400 each
Estimated costs for the year:
Variable costs
Direct Material
R520 per unit
Direct Labour
R350 per unit
Variable Manufacturing Cost
R110 per unit
Selling expenses
6% of selling price per unit
sold
Factory overheads (all fixed)
R625 000
Administrative expenses (all fixed)
R462 000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education