Reference no: EM132636210
Instruction 1. Unit Covered
Course Volume Profit Analysis 2. Submission Date 14 September 2020
3. Submission Closing Time
4. Assessment Weight This tutorial weighs 5% towards your year mark
5. Submission format The tutorial is to be submitted strictly on black board.
The tutorial must be typed in word
No late submissions or e-mail submissions will be accepted
Question 1 : Jeankelly company manufactures custom-designed baby shoes and other baby accessory products. The costs are as follows:
variable costs are R10.80 per pair of custom pair of baby shoes,
the selling price is R16 per custom pair of baby shoes and
fixed costs are R 66 560.
Required NB: Do not write formulas, show only the answer in percentage or number form
Problem a) What is the contribution margin for one pair of baby shoes?
Problem b) How many baby shoes must Jeankelly sell to break?
Problem c) If Jeankelly company sells 13 000 pairs of baby shoes, what is the operating income?
Problem d) Calculate the margin of safety in units and in sales revenue if 13 000 baby pairs of shoes are sold.
Problem e) Draw the CVP graph showing fixed cost, variable costs and break-even point.