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 Selling price per table Variable manufacturing costs per table: 2. 3. 4. 5. 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%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Please use the attached information provided and please answer questions (attached also). Thanks.

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.
3.
5.
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%
Transcribed Image Text: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. 3. 5. 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%
Calculate 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.
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:Calculate 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. 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. |
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