Homework Help is Here – Start Your Trial Now!
Business
Accounting
REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the margin of safety (expressed in units). 3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. 3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. 3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 000

REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the margin of safety (expressed in units). 3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. 3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. 3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
QUESTION 3 REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the margin of safety (expressed in units). 3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. 3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. 3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 000
Transcribed Image Text:QUESTION 3 REQUIRED Use the information provided below to answer the following questions independently: 3.1 Calculate the margin of safety (expressed in units). 3.2 Use the marginal income ratio to determine the break-even value if the direct manufacturing costs are R10 per unit more than expected. 3.3 Calculate the total Marginal Income and Net Profit/Loss if the sales volume for 2023 is 20% below the budgeted quantity. 3.4 Calculate the number of units that must be sold to earn a net profit of R150 per unit. 3.5 Calculate the break-even quantity if the selling price is reduced by R50 per unit and the fixed manufacturing costs decrease by R22 000. INFORMATION The Salmon Ltd manufactures and sells fishing rods for R600 each. The budgeted sales for 2023 are 22 000 rods and the costs are expected to be as follows: Direct manufacturing costs per unit Variable manufacturing overheads cost per unit Variable administration costs per unit Sales commission Fixed manufacturing costs Fixed administration and selling costs R R200 R50 R40 10% of sales R1 800 000 R600 000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS