QUESTION 3REQUIREDStudy the information provided below and calculate the following independently:3.43.5The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 perunit and the non-manufacturing fixed costs decrease by R20 000.The number of units that must be sold to earn a net profit of R1 440 000, if the variablecosts increase by 10%.INFORMATIONAscot Ltd manufactures shirts. The following information was extracted from the budget for the month ended28 February 2023:SalesSelling price per unitDirect material cost per unitDirect labour cost per unitVariable manufacturing overhead costs per unitSales commissionFixed manufacturing overhead costsFixed selling and administrative costs50 000 unitsR100R30R18R7R5 per unit soldR400 000R200 000

Income Statement : It is a part of financial statement of a company in which revenue and expenses…

QUESTION 3 REQUIRED Study the information provided below and calculate the following independently: 3.4 3.5 The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%.

QUESTION 3 REQUIRED Study the information provided below and calculate the following independently: 3.4 3.5 The total Marginal Income and Net Profit/Loss, if the selling price is adjusted to R90 per unit and the non-manufacturing fixed costs decrease by R20 000. The number of units that must be sold to earn a net profit of R1 440 000, if the variable costs increase by 10%.

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 2 The following information describes a product expected to be produced and sold by Hadley Company: Selling price Variable costs $80 per unit $32 per unit $630,000 Total fixed costs Required: a. Calculate the contribution margin ratio. b. Calculate the break-even point in dollar sales. c. What dollar amount of sales would be necessary to achieve a pretax income of $120,000? Edit Format Table 12pt v Paragraph | BIU V Αν BVT² V || : F2 F3 F4 -0- 2 W 9. # 3 E SA 4 F5 R F6 % 5 Ø T F7 < 다 6 F8 Y & 7 F9
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2.9 Company X and Company Y sells the same product for the same price. Company X has fixed costs of Birr 100 and variable costs of Birr 10 per unit. Company Y has fixed costs of Birr 200 and variable costs of Birr8. What is the unit sales price at which these companies will have the same break-even point in terms of unit sales?
Holding other factors constant, a company's contribution margin per unit will increase with: O a. any decrease in quantity sold. O b. increase in its total fixed costs c. O c. any decrease in the selling price per unit O d. any increase in variable cost per unit O e. None answers given are correct. 14:0 nere to search W A a 10) ENG 15-04-2 prt sc delete home end $ 96 & 6. num 8. + backspace lock V E T P home D F J K enter pause C 1 shift end alt ctrl
You are given the following• Total sales 40• Total fixed cost 2• Net profit 28 What is the TOTAL contribution margin?
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X The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000+ 7000 6000 5000 4000 Dollars ($) 3000- 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (295,7650) (b) What are the fixed costs? $ Percent of capacity= 40 Units Next Question 50 TR If the selling price per unit is $90, and the variable cost per unit is $20: TC FC 60 70 80 90 100 (c) If the maximum production capacity of the commodity is 110, express the break- even units as a percent of capacity? enter the answer in the form (x,y) e.g. % (round to two decimal places if necessary)
Q5 From the following particulars you are required to calculate (a) PIV ratio and (b) Break-even point Le) Margin of Safety Actual sales OMR. 200000 Variable cost OMR. 120000 Fixed cost OMR. 45000 Also calculate the sales required to maintain the profit OMR 72000.
• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?