Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even.
Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed
in rands and cents) that will enable the company to break even.
INFORMATION
Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:
1. Total production and sales 2 400 units
2. Selling price per table R1 200
3. Variable
Direct material R288
Direct labour R192
Overheads R96
4. Fixed manufacturing overheads R216 960
5. Other costs:
Fixed marketing and administrative costs R144 000
Sales commission 5%
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