REQUIRED Study the information provided below and calculate the following independently 3.1. Total Marginal Income and Net ProfitLoss 3.2 3.3 3.4 3.5 Break-even value Margin of safety (expressed in units) if the budgeted sales volume is 10% below the forecasted figure. 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%.
REQUIRED Study the information provided below and calculate the following independently 3.1. Total Marginal Income and Net ProfitLoss 3.2 3.3 3.4 3.5 Break-even value Margin of safety (expressed in units) if the budgeted sales volume is 10% below the forecasted figure. 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%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:REQUIRED
Study the information provided below and calculate the following independently:
3.1. Total Marginal Income and Net Profit/Loss
3.2
3.3
3.4
3.5
Break-even value
Margin of safety (expressed in units) if the budgeted sales volume is 10% below the
forecasted figure.
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%
INFORMATION
Ascot Ltd manufactures shirts. The following information was extracted from the budget for the month ended
28 February 2023:
Sales
Selling price per unit
Direct material cost per unit
Direct labour cost per unit
Variable manufacturing overhead costs per unit
Sales commission
Fixed manufacturing overhead costs
Fixed selling and administrative costs
50 000 units
R100
R30
R18
R7
R5 per unit sold
R400 000
R200 000
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