ABC Company is a manufacturer of widgets. The company has provided the following financial information...
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ABC Company is a manufacturer of widgets. The company has provided the following financial information for the year 2023: Selling Price per Widget R10 Direct Materials per Widget R1.50 Direct Labour per Widget R1.80 Variable overheads per Widget RO.70 Fixed cost R20 000 Expected sales for 2023 10 000 widgets Required: Calculate the following breakeven and profit - related metrics, providing both the formula and the calculation: 1.1 Breakeven Quantity (in units ). (4 Marks) 1.2 Breakeven Value (in rands). (4 Marks ) 1.3 Margin of Safety (in rands and percentage). (8 Marks) 1.4 Number of Sales Units Required to Achieve a Profit of R15, 000. (5 Marks) 1.5 Calculate the new breakeven quantity if the selling price increases to R12 while other factors remain the same. (4 Marks)
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