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24.2
Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level:
Fixed administrative cost per unit R90.00
Total fixed manufacturing
Total fixed marketing cost R50 000
Direct material usage per product 2 kg
Direct material price per kilogram R14.50
Total direct labour cost R47 500
Required:
All
Refer to above. Do you think that it is viable for Jabu to launch the advertising campaign?
(1.) Calculate the increase in total contribution
Select the correct answer:
A: 10 000
B: 14 403
C: 4 403
D: 576.10
E: None of the above
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