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BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses...

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Accounting

BesteLippe (Pty) Ltd produces two types of lip balm, namely Healing and Organic and uses an absorption costing system. BesteLippe budgeted to produce and sell 1800000 units of Healing and 600000 units of Organic for the financial year starting on 1 May 2024. The other budgeted information is as follows:
\table[[Details,\table[[Healing],[R per unit]],\table[[Organic],[R per unit]]],[Selling price,40,00,45,00],[Direct raw material,14,25,20,00],[Direct Labour,5,00,8,00],[Variable overhead costs,4,00,6,00],[Selling and distribution costs,2,50,4,00],[(70% fixed and 30% variable),,]]
Fixed manufacturing overheads and General administrative costs are R5000000 and R11000000 respectively for the financial year starting on 1 May 2024.
The total weighted average contribution margin to be used in the break-even unit calculation for the financial year starting on 1 May 2024 is (round your answer to the nearest two decimal places):
Select one:
a.R15,31
b.R27,75
c.R25,80
d. R14,45
e. None of the options
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