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 commission is increased to 8% percent of selling price and a further R10 000 is speny on advertising 5. Calculate the revised breakeven point based on the marketing managers suggestion
QUESTION2
A company manufactures a single product. Budget and
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 commission is increased to 8% percent of selling price and a further R10 000 is speny on advertising
5. Calculate the revised breakeven point based on the marketing managers suggestion
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