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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Calculate the number of units that must be sold to earn a net profit of R150 per unit
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- For 2023, the estimated (budgeted) cost and revenue information of Şam Company is provided below: Sales units = 200000 units, Selling price per unit = 15 dollars, Number of units produced = 220.000 units, DM = $3 per unit, DL = $1 per unit, Var MOH = $2 per unit, Fixed MOH = $440.000, Var Selling and Adm Exp = $4 per unit, Fixed S&A Exp = $60.000. A.) Prepare CVP Income Statement. B.) Calculate BEP in Units and BEP in dollars. C.) What is the margin of safety ratio of Şam Company? D.)Calculate the degree of operating leverage and explain what happens to NI if sales increase 10% and decrease 5%.A company is expecting to have 1000units sales in next quarter. Find out the Budgeted profit for next quarter. SP -$50/ unit DM cost – $15/unit DL Cost - $5/unit VMOH- $7/unit FMOH – 15000Use the information given below to calculate each of the following independently 3.5 Selling price per unit that will enable the company to achieve a net profit of R1 500 000 INFORMATIONSlumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS
- XYZ Inc. sells 3 products: X, Y and Z. Budgeted Fixed Cost for next period totals P106,500. Other projected data are as follows: Selling Variable Cost Price Sales Product Volume (Units) 16,000 12,000 52,000 P14 P9 Y 10 6 11 How many units of product Y must be sold in order for the firm to earn operating income of P85,200?Arden Ltd tentative budget for product TYL for 2019 is shown below: Sales (2500 units at £40 a unit Manufacturing cost of goods sold 100,000 Direct labour 15,000 Direct materials 14,000 Variable factors overhead 10,000 Fixed factors overheard 5000 44,000 Gross profit 56,000 Selling express Variable 6000 Fixed 10,000 Administrative expenses Variable 5,000 Fixed 10,000 31,000 Operating income 25,0000 Required: (a). How many units of product TYL would have to be sold to break-even.] (b). What would be operating income if projected sales increased by 30%.The following information was extracted from the budget for the month ended 31 August 2022: Sales 10 000 units at R200 per unit Direct materials cost per unit R50 Direct labour cost per unit R34 Variable manufacturing overhead costs per unit R24 Variable selling costs per unit R12 Fixed manufacturing overhead cost R230 000 Fixed selling and administrative costs R170 000 3.1 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. 3.2 Break even value by using the marginal income ratio 3.3 Margin of safety (in units) 3.4 The sales volume required to earn a net profit of R560 000 3.5 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%.
- INFORMATION 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..........................................R200 Variable manufacturing overheads cost per unit.......................R50 Variable administration costs per unit.......................................R40 Sales commission.....................................................................10% of sales Fixed manufacturing costs........................................................R1 800 000 Fixed administration and selling costs......................................R600 000 Use the information provided to answer the following questions independently: 1. Calculate the margin of safety (expressed in units). 2.Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3. Calculate the total Marginal Income and Net…Shanell Industrial Limited makes and sells one product, which has the following standard variable production costs per unit. Rs. Direct materials cost (2 kg at Rs.25 per kg) 50 Direct labour cost (3 hours at Rs.40 per hour) 120 Variable production overhead costs (Rs.10 per labour hour) 30 The budgeted selling price per unit is Rs.400 for the coming two years. The production and sales budgets for the next two years are as follows: 2019 2020 Production in units 50,000 60,000 Sales in units 40,000 70,000 There is no opening inventory at the beginning of 2019. Budgeted and actual costs are as follows. Fixed production overhead costs Rs.1,080,000…⦁ MNO Company has projected to sell 500,000 units of its primary product in 2022. It estimates the selling price to be $50 per unit. Required: ⦁ If MNO Company Estimates the unit cost to produce the 500,000 units consists of Material cost $5; Direct labor cost $7; and manufacturing overhead $8. What is the total production cost for the its annual projected sales unit? Show Computation in a production budget format.
- GHI Company manufactures two products that sell to the same market. Its budget and operating results for 2021 are as follows: Budgeted Actual Unit sales Product A 30,000 35,000 Product B 60,000 65,000 Unit contribution margin Product A P 4.00 P 3.00 Product B PI0.00 P12.00 Unit selling price Product A PI0.00 P12.00 Product B P25.00 P24.00 Industry volume was estimated to be 1,500,000 units at the time the budget was prepared. Actual industry volume for the period was 2,000,000 units. The market size contribution margin variance is Select one: a. P240,000 U O b. P240,000 F c. P160,000 F d. PI60,000 USamcor Limited manufactures tables. The following information was extracted from the budget June 2022: 1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units year R1 200 R288 R192 R96 R216 960 R144 000 5%Use the information given below to calculate each of the following independently 3.4 Break-even value using the marginal income ratio, if the company spends an additionalR435 200 on salaries INFORMATIONSlumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS