Use the information provided below to answer the following questions: How much more can the company spend on salaries and still break even? 3.2 3.2.1 3.2.2 Calculate the sales value that is required to earn a net profit of R500 000. INFORMATION The following information provided by Montana Ltd, which manufactures only one product, is available: Fixed costs R600 000 Sales R2 500 000 Variable costs R1 500 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Use the information provided below to answer the following questions:
How much more can the company spend on salaries and still break even?
3.2
3.2.1
3.2.2
Calculate the sales value that is required to earn a net profit of R500 000.
INFORMATION
The following information provided by Montana Ltd, which manufactures only one product, is available:
Fixed costs
R600 000
Sales
R2 500 000
Variable costs
R1 500 000
Transcribed Image Text:Use the information provided below to answer the following questions: How much more can the company spend on salaries and still break even? 3.2 3.2.1 3.2.2 Calculate the sales value that is required to earn a net profit of R500 000. INFORMATION The following information provided by Montana Ltd, which manufactures only one product, is available: Fixed costs R600 000 Sales R2 500 000 Variable costs R1 500 000
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