Calculate Bongani’s net profit for the month. Compile a marginal income statement to present your answer
Question 6
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Bongani Limited manufactures a product that sells for R120. He manufactured and sold 12 500 units during the previous month. The following additional information, for this activity level, is available:
Total direct material cost R281 250 Direct labour cost per hour R12 Direct labour hours needed per product 1 ½ Total variable manufacturing Sales commission (of the selling price) 2 ½ % Total fixed manufacturing overheads R360 000 Other fixed costs in total R420 000
Do the following calculations, according to the instructions given: Required: (a) Calculate Bongani’s net profit for the month. Compile a marginal income statement to present your answer.
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