Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question 4 [20] 4.1 abc fashion is a retail busin

QUESTION 4 [20] 4.1 ABC Fashion is a retail business specializing in shoes. Here...

50.1K

Verified Solution

Question

Accounting

QUESTION 4 [20]

4.1 ABC Fashion is a retail business specializing in shoes. Here is some information about their operations: Selling Price per Shoe: R150

Variable Cost per Shoe: R80

Fixed Costs: R7,500

4.1.1 How many Shoes does ABC Fashion need to sell to cover their fixed costs? Hint: Calculate the Break Even Point in Units Show all calculations. (5)

4.1.2 What is the minimum sales revenue ABC Fashion must generate to cover their fixed costs? Hint: Calculate the Break Even Point in Revenue using the Margin Contribution Ratio (MCR) Show all calculations. (5)

4.1.3 If ABC Fashion wants to achieve a target profit of R4,500, how many Shoes do they need to sell? Show all calculations.

4.1.4 If ABC Fashion wants to achieve a target profit of R4,500, how much REVENUE would they have to earn? Show all calculations. (5)

Hint: Calculate the target profit in revenue i.e use the Margin Contribution Ratio (MCR)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Compare the life cycles of E. coli O157 and Chlamydia and name the main differences between...

Biology
Q

Why were there no large mammals around when the dinosaurs occupied the land?What features do primates...

Biology
Q

The discrete cosine transform (DCT) represents an image as a sum of sinusoids of varying magnitudes...

Electrical Engineering
Q

Americans should learn to live without these two imported products. But, they should not have to...

General Management
Q

Which of the following might be an investigation of microclimate 201 O studying the temperature...

Biology
Q

3 Explain what is happening in this image Which type of immune response will this...

Biology
Q

A survey found that women's heights are normally distributed with mean 63.6 in and standard...

Basic Math
Q

The number of gallons of water, W used when taking a shower varies directly as...

Basic Math
Q

Answer the following questions. (2 marks each) Define the law of demand Explain the...

Accounting
Q

Mr. John Jones a pensioner has four sons and four plots of land in Guyana....

Accounting
Q

The bank quoted a fixation for the exchange rate for 16 November 2022 in Q7....

Finance
Q

The following list contains Division C deductions: a. Charitable donations b. Employee stock option deductions...

Accounting