Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level: Fixed administrative cost per unit R90.00 Total fixed manufacturing overhead R120 000 Total fixed marketing cost R50 000 Direct material usage per product 2 kg Direct material price per kilogram R14.50 Total direct labour cost R47 500 Required: Compile a marginal income statement to determine the break-even units and break-even value. (d) Calculate net profit (e) Calculate breakeven sales units
- Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level:
Fixed administrative cost per unit R90.00
Total fixed manufacturing
Total fixed marketing cost R50 000
Direct material usage per product 2 kg
Direct material price per kilogram R14.50
Total direct labour cost R47 500
Required:
Compile a marginal income statement to determine the break-even units and break-even value.
(d) Calculate net profit
(e) Calculate breakeven sales units
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