QUESTION 2Mulenga Chisha (MC) produces crocodile sausages and the budgeted profit per unit is asfollows:KMaterials1.00Labour1.50Variable Production overhead1.50Fixed Production overhead2.00Variable Selling Cost0.50Fixed Selling Cost1.00ProfitSelling price2.5010.00MC has budgeted 9,500 units of crocodile sausage in a year. In the first year ofproduction, the only difference from the budget was that MC produced 10,500 units ofcrocodile sausages and sold 8,500 units.Required:Preparea) Profit statement under absorption costing.b) Profit statement under marginal costing.

Step 1: Calculate the Total Revenue:- Multiply the selling price per unit by the number of units…

Answered: QUESTION 2 Mulenga Chisha (MC) produces…

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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Q.1.2 RiverMax (Pty) Ltd produces three items, X, Y and Z, which it supplies to the local stores. The table below indicates the budgeted information for 2023: X Y Z Sales (units) 35 000 34 000 48 000 Selling price per unit R17 R26 R23 Variable cost per unit R11 R18 R12 Annual fixed cost R250 000 R310 000 R360 000 Required: Calculate the aggregate break-even units and sales for RiverMax (Pty) Ltd. Round off your answers to the nearest whole number.
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ll.2
) ML sells three products: Good, Better and Best. The market for the products dictates that the number of products sold are always in the ratio of 3Good:4Better:5Best. Budgeted sales volume and prices, and cost details for the previous period were as follows: Good Better Best Sales units 300 400 500 Selling price per unit GHS80 GHS55 GHS70 Contribution to sales ratio 70% 65% 50% The budgeted total fixed costs for the period were GHS31,200 Required: Calculate for that period: (i) The break-even sales revenue. (ii) The volume of each product that would have needed to be sold if the company had wanted to earn a profit of GHS29,520 in that period.
QUESTION2 A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distrivution costs R230 400 Sales commission 5% of selling price Sales 90 000 units Required 1. Calculate the break-even point in units 2. Calculate the breakeven point in rands 3. Calculate the percentage by which the budgeted sales can fall before The company begins to make a loss 4. The marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales…
S Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Weedban $ 6.00 $2.40 $ 45,000 Product Greengrow $ 7.50 $5.25 $ 21,000 Last year the company produced and sold 15,000 units of Weedban and 28,000 units of Greengrow. Its annual common fixed expenses are $33,000. Prev Required: Prepare a contribution format income statement segmented by product lines. Total Company 1 of 4 Product Line Weedban Greengrow Next >
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question A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distribution costs R230 400 Sales commission 5% of the selling price Sales 90 000 units Required he marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising Calculate the revised breakeven point based on the marketing managers suggestion
Required information Eckert Company uses the absorption costing approach to cost plus pricing to set prices for its products. Based on budgeted sales of 18.000 units next year, the unit product cost of a particular product is $60.40. The company's selling general, and administrative expenses for this product are budgeted to be $370.800 in total for the year. The company has invested $260.000 in this product and expects a return on investment of T (Appendix 12A) The markup on absorption cost for this product would be closest to which of the following O O O M4T 36.74 ALIK HON 3 Save & Submit

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