INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Calculate the break-even quantity.


2. Calculate the sales value required to achieve a net profit of 

R150 000, using the marginal income ratio.

 

3. Determine the selling price per unit if a net profit of R624 600 is desired.

INFORMATION
The following information was extracted from the budget of Mary's Manufacturers for the period July to
December 2021:
1.
Total production and sales
2 300 units
2. Selling price per unit
R200
3.
Variable manufacturing costs per unit:
Direct materials
R60
Direct labour
R40
Overheads
R20
4.
Fixed manufacturing overheads
R200 000
5.
Other costs:
Fixed marketing and administrative costs
R100 000
Sales commission
10% of sales
Transcribed Image Text:INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales
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