Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2 400 units 2. Selling price per table R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads R96 4. Fixed manufacturing overheads R216 960 5. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5%
Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expense by R100 000 is expected to increase sales by 400 units. INFORMATION Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales 2 400 units 2. Selling price per table R1 200 3. Variable manufacturing costs per table: Direct material R288 Direct labour R192 Overheads R96 4. Fixed manufacturing overheads R216 960 5. Other costs: Fixed marketing and administrative costs R144 000 Sales commission 5%
Chapter7: Budgeting
Section: Chapter Questions
Problem 13PA: Caribbean Hammocks currently sells 75.000 units at $50 per unit. Its expenses are: Management...
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Question
Calculate the new total Marginal Income and Net
by R100 000 is expected to increase sales by 400 units.
INFORMATION
Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022:
1. Total production and sales 2 400 units
2. Selling price per table R1 200
3. Variable
Direct material R288
Direct labour R192
4. Fixed manufacturing overheads R216 960
5. Other costs:
Fixed marketing and administrative costs R144 000
Sales commission 5%
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