MAC3701 ASS1 FORF SEMESTER 1 FOR 2021
Prepared by MR BLESSING K.
Contact details :074 252 3282
Email addres:
1. (2) variable
2. (1) R39 600.
MM’s budgeted annual total fixed costs:
Rent (R2 350 x 12 months ) R28 200
Servicing costs R 7 800
Web-developer (R900 x 4 quarters) R3 600
Total R39 600
3. (2) Standard-length curtains: R89,45; Extra-length curtains: R98,10.
MM’s budgeted weighted-average contribution margin
Contribution per unit = Selling price – Variable costs per unit
𝑅6 500 𝑅25 12
Standard-length curtains =R250 –(2,23m x 100𝑚
) –(8m x 1000𝑚 )-R8 –( 60 x R30)-R1.40 =R89.45
𝑅6 500 𝑅25 9
Extra-length curtains = R280-–(2,55m x 100𝑚
) –(10m x 1000𝑚 )-R10–( 60 x R30)-R1.40 =R98.10
Sales mix Ratio is 4 Standard-length curtains : 1 Extra-length curtains
Therefore , budgeted weighted-average contribution margin = (4 x R89.45)+(1 x R98.10)
=R455.90
4. (3) R256 000
Break-even sales value = BEP units x Selling price per unit
MR BLESSING K . 074 252 3282 or 074 252 3282
, 𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 𝑅103 000
BEP batches = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑏𝑎𝑡𝑐ℎ
= (𝑅100∗4)+(𝑅115∗1)
=200 batches
BEP units = BEP batches x units per batch:
Standard-length curtains = 200 x 4 =800 units
Extra-length curtains =200 x 1 =200 units
BEP Sales value = (800 x R250) +(200 x R280)
= R256 000
5. (1) 1 453 standard-length curtains; and 364 extra-length curtains
𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠+𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑅103 000+(𝑅7000∗12)
Batches to attain a target profit = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑏𝑎𝑡𝑐ℎ
= (𝑅100∗4)+(𝑅115∗1)
=363.11 batches
Units to attain a target profit = Batches to attain a target profit x unit per batch:
Standard-length curtains = 363.11 x 4 =1 453 units
Extra-length curtains =363.11x 1 =364 units
6. (5) None of the above options.
7. (3) R6 050,00.
budgeted contribution per unit of Electric tuk = Selling price – Variable costs per unit
𝑅10 332 000 𝑅8 820 000
= R25 000- - - R2 500 –(0.05 x R25 000 )
1 260 1 260
=R6 050.00
8. (4) R1 000,00.
𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑓𝑖𝑥𝑒𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑𝑠
Budgeted fixed manufacturing overheads absorption rate = 𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑢𝑛𝑖𝑡𝑠
𝑅3 780 000
= 3 780 𝑢𝑛𝑖𝑡𝑠
=R1 000 per unit
9. (3) R1 549 800,00.
MR BLESSING K . 074 252 3282 or 074 252 3282
Prepared by MR BLESSING K.
Contact details :074 252 3282
Email addres:
1. (2) variable
2. (1) R39 600.
MM’s budgeted annual total fixed costs:
Rent (R2 350 x 12 months ) R28 200
Servicing costs R 7 800
Web-developer (R900 x 4 quarters) R3 600
Total R39 600
3. (2) Standard-length curtains: R89,45; Extra-length curtains: R98,10.
MM’s budgeted weighted-average contribution margin
Contribution per unit = Selling price – Variable costs per unit
𝑅6 500 𝑅25 12
Standard-length curtains =R250 –(2,23m x 100𝑚
) –(8m x 1000𝑚 )-R8 –( 60 x R30)-R1.40 =R89.45
𝑅6 500 𝑅25 9
Extra-length curtains = R280-–(2,55m x 100𝑚
) –(10m x 1000𝑚 )-R10–( 60 x R30)-R1.40 =R98.10
Sales mix Ratio is 4 Standard-length curtains : 1 Extra-length curtains
Therefore , budgeted weighted-average contribution margin = (4 x R89.45)+(1 x R98.10)
=R455.90
4. (3) R256 000
Break-even sales value = BEP units x Selling price per unit
MR BLESSING K . 074 252 3282 or 074 252 3282
, 𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠 𝑅103 000
BEP batches = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑏𝑎𝑡𝑐ℎ
= (𝑅100∗4)+(𝑅115∗1)
=200 batches
BEP units = BEP batches x units per batch:
Standard-length curtains = 200 x 4 =800 units
Extra-length curtains =200 x 1 =200 units
BEP Sales value = (800 x R250) +(200 x R280)
= R256 000
5. (1) 1 453 standard-length curtains; and 364 extra-length curtains
𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡𝑠+𝑇𝑎𝑟𝑔𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑅103 000+(𝑅7000∗12)
Batches to attain a target profit = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑏𝑎𝑡𝑐ℎ
= (𝑅100∗4)+(𝑅115∗1)
=363.11 batches
Units to attain a target profit = Batches to attain a target profit x unit per batch:
Standard-length curtains = 363.11 x 4 =1 453 units
Extra-length curtains =363.11x 1 =364 units
6. (5) None of the above options.
7. (3) R6 050,00.
budgeted contribution per unit of Electric tuk = Selling price – Variable costs per unit
𝑅10 332 000 𝑅8 820 000
= R25 000- - - R2 500 –(0.05 x R25 000 )
1 260 1 260
=R6 050.00
8. (4) R1 000,00.
𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑓𝑖𝑥𝑒𝑑 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑𝑠
Budgeted fixed manufacturing overheads absorption rate = 𝐵𝑢𝑑𝑔𝑒𝑡𝑒𝑑 𝑢𝑛𝑖𝑡𝑠
𝑅3 780 000
= 3 780 𝑢𝑛𝑖𝑡𝑠
=R1 000 per unit
9. (3) R1 549 800,00.
MR BLESSING K . 074 252 3282 or 074 252 3282
