SECTION B PRACTICE pl Answer three questions only from this section. 5. Enjoyment Limited produces...

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SECTION B PRACTICE pl Answer three questions only from this section. 5. Enjoyment Limited produces "sweet dee" according to customers' specifications. The company received an order for 250 units which it had produced and delivered. Details of the inputs required to produce a unit of "sweet dee" are as follows: Direct materials Pee Kay 4 kg @ GH 6 per kg 5 kg @ GH 9 per kg Direct labour Grade A Grade B 12 hours @ GH 12 per hour 6 hours @ GH 4 per hour Direct expenses GH 24 Overheads are charged at 25 % of direct wages. olib on You are required to prepare a statement showing the: (a) cost of producing one unit of "sweet dee"; (6) profit on the sales of the order for 250 units at a margin of 25 %. (15 marl 6. Dodzi Manufacturing is planning its production operations for its product Champion Rice for the next year. Information for the past year showed the following: ido Production (bags) Cost (D) : 24,000 1,296,000 38,000 1,800,000 . A bag of rice is sold for D 51 and the business is targeting a profit of D 300,000 for the next year. You are required to calculate: (a) variable cost per unit; (b) contribution per unit; (c) fixed cost; (d) break-even point in units; (e) break-even point in sales value; number of bags to be produced and sold to meet the target profit

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