You have taken over the family business, making custom furniture for sale in South Africa and for export to neighbouring African countries. Your long‐term strategic objective is “To increase export sales of bespoke furniture to Africa over the next four years”. You have designed a new outdoor dining set that will sell for R7 500. Your variable costs to produce the product amount to R2 500 per set and the fixed costs you estimate at R25 000. In 2021, your assets amounted to R525 000 (current assets) and R1.5 million (non‐current assets) Liabilities for 2021 amounted to R260 000 (current liabilities) and R1.1 million (non‐current liabilities). Q.3.1 Evaluate your long‐term goal with suggestions on how to improve it. Q.3.2 Conduct a breakeven analysis to determine the number of dining sets the company must sell to break even. Q.3.3 Calculate your debt ratio based on the figures provided. Explain your findings
You have taken over the family business, making custom furniture for sale in South Africa and for
export to neighbouring African countries. Your long‐term strategic objective is “To increase export
sales of bespoke furniture to Africa over the next four years”.
You have designed a new outdoor dining set that will sell for R7 500. Your variable costs to produce
the product amount to R2 500 per set and the fixed costs you estimate at R25 000. In 2021, your
assets amounted to R525 000 (current assets) and R1.5 million (non‐current assets) Liabilities for
2021 amounted to R260 000 (current liabilities) and R1.1 million (non‐current liabilities).
Q.3.1 Evaluate your long‐term goal with suggestions on how to improve it.
Q.3.2 Conduct a breakeven analysis to determine the number of dining sets the company
must sell to break even.
Q.3.3 Calculate your debt ratio based on the figures provided. Explain your findings
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