Reference no: EM132935364
QUESTION - Oli Manufacturers Limited plans to produce a new product called Double P and the following information is available:
Expected sales for July 2020
10 000 units at R300 each
Expected variable cost for July 2020:
Direct materials R20 per unit
Direct labour R10 per unit
Selling expenses 10% of sales
Expected fixed costs for July 2020:
Factory expenses R5 160
Administrative expenses R15 000
Required -
1. Calculate the marginal income per unit?
2. Calculate the break-even quantity?
3. Calculate the break-even value?
4. Calculate the marginal income ratio.
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Prepare the required income tax related journal entries
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