05 if the company wants to increase its total

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Unformatted text preview: s to increase its total contribution margin by 40%, it will need to increase its sales by about: a. R48,840 b. R72,000 c. R50,400 d. R34,188 e. none of the above CVP.06 If the company wants its margin of safety to equal R40,000, it will need to sell about: a. 1,158 units b. 1,958 units c. 2,300 units d. 800 units e. 500 units CVP.07 If the company's fixed expenses decrease by 20%, the break-even point will change from its previous level by about a: a. 232 unit increase b. 510 unit decrease c. 232 unit decrease d. 510 unit increase e. 510 unit increase CVP.08 Biggers Limited expects the following results for the next accounting period: Sales Variable costs Fixed costs Expected production and sales in units R240,000 R135,000 R40,000 3,000 The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by R10,000. If advertising expenditures ar...
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This document was uploaded on 04/05/2014.

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