Study the information given below and answer the following questions independently: 3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without using the contribution margin ratio Based on the expected sales volume, what sales price per unit will allow the company to break even? 3.2.2 INFORMATION Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected sales of 40 000 units: Variable manufacturing costs Fixed manufacturing costs Fixed marketing and administrative costs R3 840 000 R1 200 000 R420 000
Study the information given below and answer the following questions independently: 3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without using the contribution margin ratio Based on the expected sales volume, what sales price per unit will allow the company to break even? 3.2.2 INFORMATION Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected sales of 40 000 units: Variable manufacturing costs Fixed manufacturing costs Fixed marketing and administrative costs R3 840 000 R1 200 000 R420 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Study the information given below and answer the following questions independently:
3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without
using the contribution margin ratio
Based on the expected sales volume, what sales price per unit will allow the company to break
even?
3.2.2
INFORMATION
Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected
sales of 40 000 units:
Variable manufacturing costs
Fixed manufacturing costs
Fixed marketing and administrative costs
The expected selling price is R150 per unit.
R3 840 000
R1 200 000
R420 000
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Step 1: Introduce to break even point
VIEWStep 2: Working for contribution margin per unit, contribution margin ratio and total fixed cost
VIEWStep 3: Working for target sales value required for operating profit of R972,000
VIEWStep 4: Working for sales price per unit at expected sales volumes of break even point
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