User Account

All Pages

Calculate the new break-even quantity

Assignment Help Managerial Accounting
Reference no: EM132552529

Greenweed Limited manufactures specially treated garden benches. The following information was extracted from the budget for the year ended 29 February 2020:

The estimated sales for the financial year are 2000 units.

selling price per garden bench is R450.

Variable production cost per garden bench comprises of the following:

Direct materials: R135

Direct Labour: R90

Overheads: R45

The cost for fixed production overheads are R127 500 and selling and administrative expenses are broken down as follows:

Salary of sales manager for the year: R75 000

Sales commission: 10% of sales

Required: (Round of answers to the nearest rand or whole number)

Question 1: Calculate the breakeven quantity.

Question 2: Determine the break-even value using the marginal income ratio.

Question 3: Calculate the margin of safety.

Question 4: Determine the number of sales units required to make a profit of R150 000.

Question 5: Suppose Greenweed Limited wants to make provision for a 10% increase in fixed production costs and an increase in variable costs of R15 per unit. Calculate the new break-even quantity.

Reference no: EM132552529

Questions Cloud

Discuss steps involved in security planning for organization : Discuss?the steps involved in security planning for the organization. How important is risk management in the security planning process for the organization?
How can the use of return on investment as a performance : How can the use of return on investment as a performance measure lead to bad decisions in a company? How can residual income and economic value
What is the effective annual interest rate on line of credit : What is the effective annual interest rate on this line of credit?
Organization and ultimately overall productivity levels : Analyze the impact on overall morale, relationships within the organization and ultimately overall productivity levels.
Calculate the new break-even quantity : Make provision for a 10% increase in fixed production costs and an increase in variable costs of R15 per unit. Calculate the new break-even quantity.
Analyzing the material presented and include the page : Apply the concepts from the appropriate chapter. Hint: Be sure to use specific terms and models directly from the textbook in analyzing the material presented.
Draft the income statement for the year ended may : Draft the income statement for the year ended 31 May 2020 using the Marginal Costing method and Absorption costing method.
How do you see it governance evolving in the next years : Define and relate these different terminologies and Information Governance (IG), Data Governance (DG) and Information Technology Governance (ITG), E-Discovery.
Discuss physical asset controls in space and maritime : Discuss physical asset controls in space, maritime, and physical domains of states and nations globally. What can you discuss from your research?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine the actual materials cost incurred for manufacture

Determine the actual materials cost incurred for the manufacture of 5,000 finished units, and compute the total materials variance.

  Compute the unit product cost for year

Assume the company uses super-variable costing: Prepare an income statement for Year 1, Year 2, and Year 3. Prepare an income statement for Year

  How bill bananas will try to

Business, but needs to improve its distribution first. After bench marking with a large national comparison firm, Carl's Candies, Bill's Bananas will try to

  What are breakeven sales in dollars

The selling price per dozen is $15, variable costs are $9 per dozen, and total fixed costs are $4,200. What are breakeven sales in dollars?

  What steps should she conside

What steps should she consider?

  What is j most profitable sales mix

B uses three times as much direct material as unit of A . What is J most profitable sales mix, assuming there is unlimited demand for either product

  What amount of goodwill will be reported

Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership.

  Analyze ratios using or comparison with industry ratios

In addition to comparison with industry ratios, it is also helpful to analyze ratios using? neither; only industry ratios provide valid comparisons

  Compute cost driver rates for each of the activities

Compute the per unit product costs for each of the four products. Compute this cost using ABC allocation for overhead. Show the computation for each per unit product cost in detail.

  Compute the fy cost of goods sold

The total manufacturing costs amounted to $296,000. Use this information to determine the FY 2018 Cost of Goods Sold. (Round enter as whole dollars)

  Alternative methods of joint costs allocation

Pacific Lumber processes lumber products for sale to lumber wholesalers. Its most popular line is oak products. Oak tree growers sell Pacific Lumber whole trees

  Balances appeared in the accounts of fast wheels

The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd