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The Tableware Led plans to sell 5, 000 saucepans at $75 each in the coming year , Product costs include " Direct materials per saucepan $30...

I am currently revising past papers for the upcoming exam. I have been stuck to these questions 3,4,5 and 6? Is there anyone can provide solutions?


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The Tableware Led plans to sell 5, 000 saucepans at $75 each in the coming year , Product costs
include "
Direct materials per saucepan
$30
Direct labour per saucepan
85
Variable factory overhead per saucepan $4
Total Fixed factory overhead
$20, 000
Variable selling expense is a commission of $3 per saucepan ; fixed selling and administrative*
expense totals $29. 500.
Required :"
1 . Calculate the total variable cost per unit . [2 marks ]
2. Prepare a contribution margin income statement for the Tableware Led for the coming
year marks ]
3 . Calculate the break - even number of saucepans [3 marks ]
4. Calculate the contribution margin ratio . [3 marks ]
5. General question ( not related to calculations in sub - questions 1- 4 ) : Briefly explain what a
contribution margin of 20% would mean [5 marks )
8. General question ( not related to calculations in sub - questions 1- 4 ) : Briefly explain what a
gross margin of 20% would mean [5 marks ]

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