alculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units.
alculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Study the information given below and answer each of the following questions independently:
Calculate the total Marginal Income and Net
Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense
by R100 000 is expected to increase sales by 400 units.
How many units must be sold if the company wishes to earn a net profit of R298 920.
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.
Transcribed Image Text:INFORMATION
Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30
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
R1 200
R288
R192
R96
R216 960
R144 000
5%
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