THREE [25] WTL Ltd produces a stylish yet affordable handbag that sells for R30 per...
80.2K
Verified Solution
Link Copied!
Question
Accounting
THREE [25] WTL Ltd produces a stylish yet affordable handbag that sells for R30 per unit. Variable costs to manufacture and sell are R16 per unit. Fixed costs and expenses are budgeted at a total of R 54 600 per year. Required: 3.1 Discuss the concept contribution margin. (4) 3.2 Calculate the break-even value in Rands. (4) 3.3 Calculate the net income to be expected on sales of R240 000. (4) 3.4 Calculate the sales revenue required to produce net income of R7 000. (4) 3.5 If fixed costs were to be increased by R 25 760, calculate the increase in sales revenue that would be required to cover the increase in fixed costs. (4) 3.6 If the selling price is decreased by 20%, what percentage increase in the number of units sold is necessary to offset this decrease in selling price
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.