Finance management Coca-cola plans to manufacture bar fridges and the following information is applicable:Estimated sales...
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Finance
Finance management
Coca-cola plans to manufacture bar fridges and the following information is applicable:
Estimated sales for the year10 000 units at R6 800 eachEstimated costs for the year: Variable costs Direct Material R1 040 per unitDirect Labour R700 per unitVariable Manufacturing Cost R220 per unitSelling expenses 10% of selling price per unit soldFactory overheads (all fixed) R875 000Administrative expenses (all fixed) R786 000
Please guide me how I can calculate the following
a. Calculate the total net profit for the estimated figures. b. Calculate the break-even quantity c. Calculate the break-even value d. Calculate the break-even value using the marginal income ratio. e. Calculate the target sales volume to achieve a profit of R1 841 000. f. Calculate the new break-even quantity and value if the selling price is increased by 15%
g. Calculate the margin of safety in units at the original budgeted volume and price
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