Limpopo Limited plans to manufacture a new energy efficient outdoor light and the following information is available: The estimated sales for the year 2024 are 5000 units at R30 each. The estimated costs for the 2024 year comprise of direct materials and direct labour of R9 and R2 per unit respectively. Fixed factory overheads are R20 000 per annum, fixed administrative expenses are R23 000 per annum and selling expenses are calculated at 20% of selling price per unit. Required: 1.1 Calculate the breakeven quantity (round off to nearest unit) 1.2 Calculate the breakeven value 1.3 Calculate the breakeven value using the marginal income ratio.

John (Head of New York's Golf Club) has given you the following per unit estimates going into his second year of operation (beginning May 1,2021) for his only product at this point; the Duffer Club:   Direct material: $94 Direct labour: $31 Variable overhead: $7.72 Selling price: $168 Tax rate: 20% Monthly fixed costs: $12.67 ($38,000 total fixed costs) Practical capacity and current production level: 3,000 units   A) Calculate New York's Club monthly break-even sales of the Duffer Club in both units and dollars (round to nearest dollar and next unit)   B) If New York Golf Club's strategy is to just break-even for the near future, how many additional Duffer clubs (units) above the current break-even point would need to be sold each month if the company wishes to increase their currently budgeted advertising costs by $12,000 per month. Assume  no changes to the selling price or to any of Duffmeister'svariable costs given above.

Brecht Ltd produces a standard product which is sold for £85 each. The business incurred variable costs of £550,000 last year and total costs were £850,000. The business sold 11,000 units during the year and was operating at full capacity. The business intends to expand its output. This will involve building a factory extension, which will increase annual fixed costs by £120,000 per year. 1. Calculate the number of products that need to be sold in order for the business to break even, after the new factory extension has been built. 2. Calculate the profit (loss) that would be generated if the business sold 10,000 units (i) before the factory extension is built. (ii) after the factory extension is built.

PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp. 10,000 per unit. To produce 15,000 units, the fixed costs are Rp. 50 million and variable costs are Rp. 4,000 per unit. For 2023, it is estimated that the number of units sold will increase by 10%. Requested: Assuming the selling price, fixed costs and variable costs do not change, calculate the estimated operating profit/loss for 2023. Notes : Write it down along with the complete way of working

Division A has the capacity to produce 120,000 units. The normal selling price of each unit is P80. The variable cost incurred for each unit is P42. Total direct fixed cost for the relevant range is P1,150,000. Division B can use the products of Division A as an input in its manufacturing process but is currently acquiring the said products from an outside supplier. The price per unit is P75. Total annual demand is 30,000 units.   1. Assuming sufficient capacity, what is the minimum acceptable transfer price to Division A? 2. Assuming only 22,500 excess capacity, what is the minimum acceptable transfer price to Division A? 3. Assuming no excess capacity, what is the minimum acceptable transfer price to Division A? 4. What is the maximum acceptable transfer price to Division B?

Veta Enterprises GmbH makes custom-built bicycles in Germany. The following are predicted to occur during the forthcoming year, which is about to commence. For the year 2021 Direct materials $10,000 Direct Labour $32,000 Total direct cost $42,000 Indirect labour cost $5000 Depreciation $1,600 Rent $2000 Insurance $1000 Indirect materials $400 Other indirect cost $200 Total Indirec cost $10,200 Direct labour time $4,000 hours Machine time 600 hours All direct labour is paid at the same hourly rate. Peter Preat wants Veta Enterprises to make a bicycle for his son. Veta estimates that the bicycle will require materials and components that will cost e1,000. It will take 50 direct labour hours and 10 direct machine hours to make the bicycle. (a) Determine the cost of the bicycle if indirect costs are allocated with direct labour hours as an allocation base. (b) Determine the cost of the bicycle if indirect costs are allocated with direct machine hours as the allocation base.   (c)…

Brecht Ltd produces a standard product which is sold for £85 each. The business incurred variable costs of £550,000 last year and total costs were £850,000. The business sold 11,000 units during the year and was operating at full capacity. The business intends to expand its output. This will involve building a factory extension, which will increase annual fixed costs by £120,000 per year. 1. Calculate the number of products that need to be sold in order for the business to break even, after the new factory extension has been built. 2. Calculate the profit (loss) that would be generated if the business sold 10,000 units ) before the factory extension is built. (i) after the factory extension is built. (Losses should be shown in brackets.) 1. The new break-even point = units (Round up your answer to the nearest whole number.) 2. (0) The expected level of profit (loss) at 10,000 units output before the factory extension = £ (Round up your answer to the nearest pound.) (ii) The expected…

he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?

need answer with brief explanation

The Assembly Division of Scottish Motors Company has offered to purchase 90,000 batteries from the Electrical Division for £104 per unit. At a normal volume of 250,000 batteries per year, production costs per battery are as follows: Direct materials Direct manufacturing labor Variable factory overhead Fixed factory overhead Total £ 40 20 12 40 £112 The Electrical Division has been selling 250,000 batteries per year to outside buyers at £136 each; capacity is 350,000 batteries per year. The Assembly Division has been buying batteries from outside sources for £130 each. Required: 5a. Should the Electrical Division manager accept the offer? Explain. 5b. From the company's perspective, will the internal sales be of any benefit? Explain.