Assuming that johnstons proposal is incorporated into

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Unformatted text preview: t Johnston’s proposal is incorporated into the budget, what should be the increase in the budgeted net income for next year? a. R 12,000 b. R 22,000 c. R 72,000 d. R 130,000 e. none of the above CVP.02 Curtis (Pty) Limited anticipates selling 10,000 units next year. The company wants to earn a net income equal to 10% of sales. If variable expenses are R12 per unit and fixed expenses total R78,000 per year, what selling price must be established to achieve the desired level of net income? a. b. c. d. e. CVP.03 R19.80 per unit R18.00 per unit R21.78 per unit R22.00 per unit none of the above A company has provided the following data: Sales 3,000 units Sales price R70 per unit Variable cost R50 per unit Fixed cost R25 000 If the sales volume decreases by 25%, the variable cost per unit increases by 15%, and all other factors remain the same, net income will: a. decrease by R...
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