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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

FINANCIAL ACCOUNTING
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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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
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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