The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 000

The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 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

Calculate the number of units that must be sold to earn a net profit of R150 per unit

The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000
rods and the costs are expected to be as follows:
Direct manufacturing costs per unit
Variable manufacturing overheads cost per unit
Variable administration costs per unit
Sales commission
Fixed manufacturing costs
Fixed administration and selling costs
R
R200
R50
R40
10% of sales
R1 800 000
R600 000

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