marry poppins a friend of yours has recently set up a small business making curtains,...
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marry poppins a friend of yours has recently set up a small business making curtains, she supplied you with the following figures and has asked your advice on a number of issues a. how much profit she will make at the proposed productionlevel and selling price b. how many pairs of curtains she needs to sell to break even at the this price Cost per month Matrials 4100 labour 5000 Production overheads 2000 selling and distribution 1000 administration overheads 500 above costs are based on producing 1200 pairs of curtains per month at selling price of R15 each 80% of labour is fixed, as the 75% of production overheads,60% of selling and distribution and 100% of administration overheads. All other costs vary directly with output.
marry poppins a friend of yours has recently set up a small business making curtains, she supplied you with the following figures and has asked your advice on a number of issues
b. how many pairs of curtains she needs to sell to break even at the this price
Matrials 4100
labour 5000
Production overheads 2000
selling and distribution 1000
administration overheads 500
above costs are based on producing 1200 pairs of curtains per month at selling price of R15 each
80% of labour is fixed, as the 75% of production overheads,60% of selling and distribution and 100% of administration overheads. All other costs vary directly with output.
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