REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit 3. Variable manufacturing costs per unit: R200 Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales

REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit 3. Variable manufacturing costs per unit: R200 Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales

Name: QUESTION 2REQUIREDUse the information provided below to answer each o
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Description: QUESTION 2REQUIREDUse the information provided below to answer each of the following questions independently:2.1 Calculate the break-even quantity.2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginalincome r

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
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Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
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