Dear Tutor, can you please help to
Calculate the sales value required to break even.
Calculate the margin of safety (as a percentage) for 2018.
Determine the sales volume required to achieve an operating profit of R1 200 000.
Suppose Tiffany Ltd is considering a R20 per unit decrease in the selling price of the product, with the expectation that this would increase annual sales by 25%. Calculate the total Contribution Margin and Operating Profit/Loss.
Determine the variable costs per unit that would enable Tiffany Ltd to break even, if 28 500 units are produced and sold?
Tiffany Ltd produces a single product. The following budgeted information for 2018 is available:
Selling price per unit R400
Expected sales volume 28 000 units
Fixed manufacturing costs per year R960 000
Variable manufacturing costs per unit R152
Advertising and salaries per year R1 296 000
Sales commission 6% of selling price
Salaries and other fixed costs per year R2 304 000
Variable costs R24 per unit sold
Break even point is a point where profit is Zero. That is, where sales matches the expenses incurred.... View the full answer