Jabu manufactures and sells ProductX. During the most recent financialperiod, he sold 500 units at R750 each. There were no units of Product X in…

If you are looking for affordable, custom-written, high-quality, and non-plagiarized papers, your student life just became easier with us. We are the ideal place for all your writing needs.


Order a Similar Paper Order a Different Paper

Jabu manufactures and sells ProductX.  During the most recent financialperiod, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory.  Sales people are paid a commission of 5% onsales.  The following additional informationis available for this sales level:

Fixed administrative cost per unit                                                                  R90.00

Total fixed manufacturing overhead                                                              R120 000

Total fixed marketing cost                                                                              R50 000

Direct material usage per product                                                                  2kg

Direct material price per kilogram                                                                  R14.50

Total direct labour cost                                                                                   R47 500

Required

  1. Compile amarginal income statement to determine the break-even units and break-evenvalue.

  2. What is themargin of safety ratio?

  3. Allmanufacturing cost increases with 10%. The marketing director estimates that sales volume will increase with 5%if an advertising campaign of R10 000 is undertaken.  What is the operating income for Jabu?

  4. Refer to (c)above.  Do you think that it is viablefor Jabu to launch the advertising campaign?

Are you stuck with another assignment? Use our paper writing service to score better grades and meet your deadlines. We are here to help!


Order a Similar Paper Order a Different Paper
Writerbay.net