Cost structure-variable cost per parachute total fixed cost

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Zithembe manufactures a parachute. Shown below is Zithembe's cost structure: Variable cost per parachute Total fixed cost for the year Manufacturing cost R240 R513,000 Selling and administrative R15 R256,500 In its first year of operations, Zithembe produced and sold 6,000 parachutes Selling price of the parachutes is R465. Required: SHOW ALL YOUR CALCUALTIONS. 3.1 If Zithembe would have sold only 3,800 parachutes in its first year, what total amount of cost would have been assigned to the 2220 parachutes in finished goods inventory under the variable costing method? (2) 3.2 How would Zithembe's absorption costing net operating income been affected in its first year if only 3,800 parachutes were sold instead of 6,000? (7) 3.3 How would Zithembe's variable costing net operating income been affected in its first year if 6,500 parachutes were produced instead of 6,000 and Zithembe still sold 6,000 parachutes? (1)

Reference no: EM131188360

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