The selling price per unit that will realise an operating profit of R720 000. 3.2.2 The number of units that must be sold in order to earn an operating profit of R720 000, if the selling price increases by 10% and fixed costs increase by R87 000.
The selling price per unit that will realise an operating profit of R720 000. 3.2.2 The number of units that must be sold in order to earn an operating profit of R720 000, if the selling price increases by 10% and fixed costs increase by R87 000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Use the information given below to calculate the following independently:
3.2.1 The selling price per unit that will realise an operating profit of R720 000.
3.2
3.2.2 The number of units that must be sold in order to earn an operating profit of R720 000, if the selling
price increases by 10% and fixed costs increase by R87 000.
INFORMATION
The following information regarding Toti Ltd, which manufactures only one product, is available for 2022:
Toti Ltd expects to sell 8 000 units at R400 per unit. Each unit requires 4 kg of materials at a cost of R25 per kg and
0.5 hours of direct labour at a cost of R60 per hour. Variable manufacturing overheads are estimated at R40 per
direct labour hour. Fixed costs are budgeted at R1 600 000.
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