Question 5The following information relates to ABC Ltd for the year ended 31 May 2015:SalesVariable costsFixed costsREQUIRED:R450 000(R270 000)(R110 000)Using the information above, determine the percentage (%) fall in sales that would need to occurbefore ABC Ltd starts incurring a loss.(Round off your answer to two (2) decimal places)

Sales R4,50,000.00 Variable Costs R2,70,000.00 Fixed Costs…

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Blue Spruce Inc. manufactures basketballs for professional basketball associations. For the first six months of 2022, the company reported the following operating results while operating at 90% of plant capacity: Sales Cost of goods sold Selling and administrative expenses Net income Amount $5,049,000 3,465.000 445,500 $1.138,500 Per Unit $51.00 35.00 4.50 $11.50 Fixed costs for the period were cost of goods sold of $990,000, and selling and administrative expenses of $178.200. In July, normally a slack manufacturing month, Blue Spruce receives a special order for 9.900 basketballs at $32,00 each from the Italian Basketball Association. Accepting the order would increase variable selling and administrative expenses by $0.75 per unit because of shipping costs, but it would not increase fixed costs and expenses.
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Please provide answer in text (Without image)
Nn1.
Given the following data: Selling price per unit Variable production cost per unit Fixed production cost Sales commission per unit Fixed selling expenses $ 2.00 $ 0.30 $3,000 $ 0.20 $1,500 The break-even point in dollars is: (Round your intermediate calculations to 2 decimal places.)

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Sales	R4,50,000.00
Variable Costs	R2,70,000.00
Fixed Costs	R1,10,000.00