Reference no: EM132825426
Management Accounting Question - Kara's C.C manufactures only one product. The following information was extracted from the budget of Kara's C.C for the period of July to December 2019.
1. Total production and sales - 2400 units
2. Selling price per unit- R300.00
3. Variable manufacturing cost per unit:
Direct materials- R70.00
Direct labour- R50.00
Overhead- R30.00.
4. Fixed manufacturing overheads- R300 000.00
5. Other costs:
Fixed marketing and administrative cost - R200 000.00
Sale commission -20% of sales
Using the information provided above, answer the following questions:
i. Calculate the break-even quantity.
ii. Calculate the sale value required to achieve a net profit of R250 000, using the marginal income ratio.
iii. Determine the selling price per unit if a net profit of R724 600 is desired.
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