Calculate the monthly break-even point in units for surfboards 7.The following information relates to the company's manufacturing process:Rental of the factory is R10 000 per month.2.Electricity in the frctory is R5 000 per month. Electricity is used evenly throughout thefactory.3.The factory is can produce 100 surfboards a month, it currently operates at 30 %capacity.4.The factory foreman's wages are R1 000 per week.5.Labourers working on the factory line get paid per unit produced and earn R1 000 persurfboard.6.Commission of 4% on the selling price of each unit sold is given to the salesrepresentative who makes the sale. All products are sold within the month they aremanufactured.Each unit has packaging costs of R100. Packaging is classified as indirect materials.8.Advertising and marketing costs amount to R4 000 per month for all surfboardsproduced.9.Administrative staff (Sue who takes the orders and Jane who is the accountant) earnR3 000 each per month; they are support staff for all surfboards produced. 10.Each board is covered in wax during production, each tin of wax costs R600 and cancover 50 surfboards.11.The material used to mould the surfboard comes in a liquid form. A 10 litre tin costsR1 000 and makes two surfbcards.12.Surfs Up pays a local surfer R2 500 per month to promote their surfboards.13.A surfboard sells for R3 800.

working note: Monthly break-even point in units will be as follows: formula will be = Total Fixed…

5n The following information relates to the company's manufacturing process: Rental of the factory is R10 000 per month. 2. Electricity in the frctory is RS 000 per month. Electricity is used evenly throughout the factory. 3. The factory is can produce 100 surfboards a month, it currently operates at 30% capacity. 4. The factory foreman's wages are R1 000 per week. Labourers working on the factory line get paid per unit produced and earn R1 000 per surfboard. 6. Commission of 4% on the se!lling price of each unit sold is given to the sales representative who makes the sale. Al products are sold within the month they are manufactured. 7. Each unit has packaging costs of R100. Packaging is classified as indirect materials. 8. Advertising and marketing costs amount to R4 000 per month for all surfboards paɔnpoud 9. Administrative staff (Sue who takes the orders and Jane who is the accountant) earn R3 000 each per month; they are support staff for all surfboards produced.

5n The following information relates to the company's manufacturing process: Rental of the factory is R10 000 per month. 2. Electricity in the frctory is RS 000 per month. Electricity is used evenly throughout the factory. 3. The factory is can produce 100 surfboards a month, it currently operates at 30% capacity. 4. The factory foreman's wages are R1 000 per week. Labourers working on the factory line get paid per unit produced and earn R1 000 per surfboard. 6. Commission of 4% on the se!lling price of each unit sold is given to the sales representative who makes the sale. Al products are sold within the month they are manufactured. 7. Each unit has packaging costs of R100. Packaging is classified as indirect materials. 8. Advertising and marketing costs amount to R4 000 per month for all surfboards paɔnpoud 9. Administrative staff (Sue who takes the orders and Jane who is the accountant) earn R3 000 each per month; they are support staff for all surfboards produced.

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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