Study the information given below and answer each of the following questions independently: Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.1 Use the marginal income ratio to calculate the break-even value. 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. How many units must be sold if the company wishes to eam a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. INFORMATION 3.2 3.3 3.4 3.5 Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales Selling price per table 2. 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%

Study the information given below and answer each of the following questions independently: Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.1 Use the marginal income ratio to calculate the break-even value. 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. How many units must be sold if the company wishes to eam a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressed in rands and cents) that will enable the company to break even. INFORMATION 3.2 3.3 3.4 3.5 Samcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30 June 2022: 1. Total production and sales Selling price per table 2. 3. 4. 5. Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%

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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QUESTION 2Use 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.
Study the information given below and answer each of the following questions independently: 3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. 3.2 Use the marginal income ratio to calculate the break-even value. 3.3 Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. 3.5 Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
1. Calculate the break-even quantity. 2. Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. 3. Determine the selling price per unit if a net profit of R624 600 is desired.
Given the information in the image below, please help me find the answer to each of the following indepedently:1. Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold.2. Use the marginal income ratio to calculate the break-even value.3.Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.4. How many units must be sold if the company wishes to earn a net profit of R298 920. 5.Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
3.2 REQUIRED Study the information given below and answer the following questions independently: 3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without using the contribution margin ratio. (4 marks) 3.2.2 Based on the expected sales volume, what sales price per unit will allow the company to break even? (4 marks) INFORMATION Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected sales of 40 000 units: Variable manufacturing costs R3 840 000 Fixed manufacturing costs R1 200 000 Fixed marketing and administrative costs R420 000 The expected selling price is R150 per unit.
Exercise 3: From the following particulars, calculate: (a) P/V Ratio (b) Profit when sales are OMR. 40,000, and (c) New break-even point if selling price is reduced by 10% Fixed cost = OMR. 8,000 Break-even point = OMR. 20,000 Variable cost = OMR. 60 per unit Selling Price = OMR 100 per unit
4.3 Break-even analysis Consider the following data: Selling price $10 per unit Variable cost $6 per unit Fixed costs $1,000 How many units need to be sold to break even? 4.4 Profit targets Using the same data as in Question 4.3, if fixed costs rise by 20% and the company need to make a profit of $350, how many units need to be sold?
Study the information given below and answer each of the following questions independently:Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value.Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.How many units must be sold if the company wishes to earn a net profit of R298 920.Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
(Use information attached) Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. Use the marginal income ratio to calculate the break-even value. 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. How many units must be sold if the company wishes to earn a net profit of R298 920. Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.
Question 3.2 Using information from the attached picture: Calculate the selling price per unit that will realize an operating profit of R720000. The number of units that must be sold in order to earn an operating profit of R720000, if the selling price increases by 10% and fixed costs increase by R87000.
Question 2 Style photo sells only one product. The statement of comprehensive income for 2021 is provided below: Sales 60,000 Less variable expenses -30,000 Contribution margin 30,000 Less fixed expenses -22,500 Net income 7,500 Required: Calculate with workings: The contribution margin ratio in percentage. Three breakeven point in total sales ringgits. The sales in RM if the company wants to achieve RM40,000 in net income.
Exercise 3: From the following particulars, calculate: (a) P / V Ratio (b) Profit when sales are OMR. 40,000, and (c) New break-even point if selling price is reduced by 10% Fixed cost = OMR. 8,000 Break-even point = OMR. 20,000 Variable cost = OMR. 60 per unit