3.2 REQUIRED Study the information given below and answer the following questions independently: 3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without using the contribution margin ratio. (4 marks) 3.2.2 Based on the expected sales volume, what sales price per unit will allow the company to break even? (4 marks) INFORMATION Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected sales of 40 000 units: Variable manufacturing costs R3 840 000 Fixed manufacturing costs R1 200 000 Fixed marketing and administrative costs R420 000 The expected selling price is R150 per unit.
3.2
REQUIRED
Study the information given below and answer the following questions independently:
3.2.1 If Dundee Limited wants to achieve an operating profit of R972 000, calculate the target sales value without
using the contribution margin ratio. (4 marks)
3.2.2 Based on the expected sales volume, what sales price per unit will allow the company to break
even? (4 marks)
INFORMATION
Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected
sales of 40 000 units:
Variable
Fixed manufacturing costs R1 200 000
Fixed marketing and administrative costs R420 000
The expected selling price is R150 per unit.
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