REQUIRED Calculate the following from the information provided below: 3.1 3.2 3.3 3.4 3.5 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. Break even value by using the marginal income ratio Margin of safety (in units) The sales volume required to earn a net profit of R560 000 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%. INFORMATION Tafel Limited manufactures tables. The following information was extracted from the budget for the month ended 31 August 2023: Sales Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Variable selling costs per unit Fixed manufacturing overhead cost Fixed selling and administrative costs 10 000 units at R200 per unit R50 R34 R24 R12 R230 000 R170 000

REQUIRED Calculate the following from the information provided below: 3.1 3.2 3.3 3.4 3.5 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. Break even value by using the marginal income ratio Margin of safety (in units) The sales volume required to earn a net profit of R560 000 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%. INFORMATION Tafel Limited manufactures tables. The following information was extracted from the budget for the month ended 31 August 2023: Sales Direct materials cost per unit Direct labour cost per unit Variable manufacturing overhead costs per unit Variable selling costs per unit Fixed manufacturing overhead cost Fixed selling and administrative costs 10 000 units at R200 per unit R50 R34 R24 R12 R230 000 R170 000

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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Question

REQUIRED
Calculate the following from the information provided below:
3.1
3.2
3.3
3.4
3.5
The total Marginal Income and Net Profit/Loss if all 10 000 units are sold.
Break even value by using the marginal income ratio
Margin of safety (in units)
The sales volume required to earn a net profit of R560 000
The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by
10%.
INFORMATION
Tafel Limited manufactures tables. The following information was extracted from the budget for the month ended
31 August 2023:
Sales
Direct materials cost per unit
Direct labour cost per unit
Variable manufacturing overhead costs per unit
Variable selling costs per unit
Fixed manufacturing overhead cost
Fixed selling and administrative costs
10 000 units at R200 per unit
R50
R34
R24
R12
R230 000
R170 000

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Step 1: Introduce to break even point

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Step 2: Working for variable manufacturing cost per unit, total variable cost per unit and total fixed cost

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Step 3: Working for Marginal Income and Net profit/Loss at 10,000 unit sold

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Step 4: Working for break even value and Margin of safety

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Step 5: Working for margin of safety and required sale volume for net profit of 560,000

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Step 6: Working for marginal income and net profit/loss if manufacturing cost increases by 10%

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