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Question 1 (10 marks; 18 minutes) Legrand Company produces hand cream in plastic jars. Each...

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Question 1 (10 marks; 18 minutes) Legrand Company produces hand cream in plastic jars. Each jar sells for R34. The variable cost for each jar totals R25.50. The total fixed cost is R581 400. During the most recent year 81600 jars were sold. Required: 1.1 Calculate the breakeven units for Legrand. (1.) Calculate the margin of safety units for the most recent year. (1.3) Calculate the degree of operating leverage (to 4 decimals). 1.4 How many units must be sold to earn a profit of R255 000? 8,50TFC+25 (2) Question 2 (15 marks; 27 minutes) Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead activities, with the following costs: SettingupequipmentMachiningR3000R18000 The controller has collected the expected annual prime costs for each briefcase, the machine hours, the setup hours, and the sunanted oroduction: Required: (2.1) Define the term controller. 2.2 Calculate the consumption ratios of each activity per product. 0,1;0,50,4 2.3 Calculate the total cost of each product using ABC. 18060 (10) 5,10?90

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