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Botswana diaries (Pvt) Ltd, sells a single product which has the following information;
| Price per unit P | Price per unit P |
Selling Price | | 120 |
Direct Material | 22 | |
Direct Labour | 36 | |
Variable overhead | 14 | |
Fixed Overhead | 12 | |
Total cost | | 84 |
Net profit | | 36 |
The fixed overhead in total amounted to P24 000. Budgeted sales for next month are 2 200 units.
You are required to calculate:
- The breakeven point, in sales units per month (5 marks)
- The margin of safety for next month (5 marks)
- The budgeted profit for next month (5 marks)
- The sales required to achieve a profit of P96 000 in a month (5 marks)
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