A company manufactures a single product. Budget and Standard cost details for next year include: Selling Price per unit R24.00 Variable Production cost per unit R8.60 Fixed production costs R650 000 Fixed selling and distribution costs R230 400 Sales commission 5% of the selling price Sales 90 000 units Required he marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising Calculate the revised breakeven point based on the marketing managers suggestion
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
question
A company manufactures a single product. Budget and
Selling Price per unit R24.00
Variable Production cost per unit R8.60
Fixed production costs R650 000
Fixed selling and distribution costs R230 400
Sales commission 5% of the selling price
Sales 90 000 units
Required
- he marketing manager has suggested that the selling price per unit can be increased to R25.00.If the sales commission is increased to 8% percent of selling price and a further R10 000 is spent on advertising
- Calculate the revised breakeven point based on the marketing managers suggestion
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