Calculate the sales value required to achieve a net profit

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Problem 1: Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio

Total production and sales  2 300 units
Selling price per unit          R200

Variable manufacturing costs per unit:

Direct materials  R60
Direct labour R40
Overheads R20

Fixed manufacturing overheads R200 000

Other costs:
Fixed marketing and administrative costs R100 000
Sales commission 10% of sales

Reference no: EM132907990

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