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A company produces a single product. Forecasts for 2024 available: The budgeted sales...

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Accounting

A company produces a single product. Forecasts for 2024 available:
The budgeted sales are 30000 units at R800 per unit. Manufacturing costs include direct materials at R160 per unit, direct labour at R100 per unit, variable overheads at R44 per unit and fixed overheads of R1920000. Marketing costs include a sales commission of 6% of the selling price and R2592000 for advertising and salaries. Administration costs include R4608000 for fixed costs and variable costs of R48 per unit sold.
Use the contribution margin ratio to calaculate the sales value required to break even?
Calculate the margin of safety as a percentage?
Determine the sales volume required to achieve double the forecast operating profit for 2024?
Suppose the company is considering a R50 per unit decrease in the selling price of the profit, with the exception that this would increase the annual sales volume by 25%, calculate the total contribution margin and operating profit/loss?
Determine the selling rpice per unit expressed to the nearest cent that would enable the company to break even, if all 30000 unitsare produced and sold.

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