REQUIRED Use the information provided below to calculate the following independently: INFORMATION Caprice Limited plans...
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Accounting
REQUIRED Use the information provided below to calculate the following independently:
INFORMATION Caprice Limited plans to start Project Midas and the following are the forecasts for 2024:
-Sales 50 000 units at R60 per unit
-Direct materials cost per unit R16
-Direct labour cost per unit R14
-Variable selling costs per unit 10% of the sales price
-Manufacturing overhead costs (all fixed) R400 000
-Fixed selling and administrative costs R560 000
2.1 Total Marginal Income and Net Profit/Loss (4 marks)
2.2 Break-even value (4 marks)
2.3 Selling price per unit that will enable the project to break even (4 marks)
2.4 Total Marginal Income and Net Profit/Loss if the variable manufacturing costs increase by 5% (4 marks)
2.5 Break-even quantity if the selling price drops by 10%. (4 marks)
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