EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PART A
A(a) Budgeted margin of safety per vehicle for the year ending 31 December 2027
Note on data used: the summary table gives a 'Manufacturing overheads' figure of R35
000 (Urban) and R52 000 (Explorer) cross-referenced to Note 1.7. Note 7 itself specifies
variable manufacturing overheads of R20 000 per vehicle and fixed manufacturing
overheads absorbed at R125 000 per vehicle. As these two sets of figures cannot both
be correct simultaneously, this solution uses the explicit variable/fixed cost classification
given in Note 7, since margin of safety (a cost–volume–profit, CVP, technique) requires
costs to be split into their variable and fixed elements (Drury, 2018:172–179); this
assumption is stated for transparency.
Contribution margin per vehicle
R Urban Explorer
Selling price 450 000.00 700 000.00
Vehicle body (0.5t /0.75t × R250 000/t) (125 000.00) (187 500.00)
Battery (60kWh/90kWh × R1
(90 000.00) (135 000.00)
500/kWh*)
Electronic control systems (40 000.00) (50 000.00)
Other direct materials (1/1.5 sets × R20
(20 000.00) (30 000.00)
000)
Direct labour (40hrs/60hrs × R300) (12 000.00) (18 000.00)
Variable manufacturing overheads
(20 000.00) (20 000.00)
(Note 7)
Education is the most powerful weapon which you can use to change the world
PU E
SHI
NG Y L E NC
OU TO THE GATE OF EXC EL
Education is the most powerful weapon which you can use to change the world
,EXCELCENTRE LEARNING INSTITUTE 061 043 9805
WARNING: PLEASE NOTE THAT PLAGIARISM IS A SERIOUS ACADEMIC
OFFENSE, therefore students must use this document ONLY as a guideline. Hence
students have regenerated their own (personalized) solutions paying particular
attention to module contents as prescribed by module facilitators, lecturers and
supervisors. This document’s purpose is to compact all sources of information that
might be relevant to students’ assignments, hence additional knowledge on the
provided information is not restricted by the authors. However, submitting this
document as one’s final work is considered unethical, and students should be
penalized. If this document is plagiarized by the users and fails, EXCELCENTRE
should not be rendered accountable since the contents in this document only give
learners a kick-start on what is expected of them from their areas of specialty.
CAUTION: STUDENTS ARE NOT MANDATED TO USE EVERY DETAIL IN THIS
DOCUMENT IN WRITING THEIR ASSIGNMENT
Education is the most powerful weapon which you can use to change the world
, EXCELCENTRE LEARNING INSTITUTE 061 043 9805
PART A
A(a) Budgeted margin of safety per vehicle for the year ending 31 December 2027
Note on data used: the summary table gives a 'Manufacturing overheads' figure of R35
000 (Urban) and R52 000 (Explorer) cross-referenced to Note 1.7. Note 7 itself specifies
variable manufacturing overheads of R20 000 per vehicle and fixed manufacturing
overheads absorbed at R125 000 per vehicle. As these two sets of figures cannot both
be correct simultaneously, this solution uses the explicit variable/fixed cost classification
given in Note 7, since margin of safety (a cost–volume–profit, CVP, technique) requires
costs to be split into their variable and fixed elements (Drury, 2018:172–179); this
assumption is stated for transparency.
Contribution margin per vehicle
R Urban Explorer
Selling price 450 000.00 700 000.00
Vehicle body (0.5t /0.75t × R250 000/t) (125 000.00) (187 500.00)
Battery (60kWh/90kWh × R1
(90 000.00) (135 000.00)
500/kWh*)
Electronic control systems (40 000.00) (50 000.00)
Other direct materials (1/1.5 sets × R20
(20 000.00) (30 000.00)
000)
Direct labour (40hrs/60hrs × R300) (12 000.00) (18 000.00)
Variable manufacturing overheads
(20 000.00) (20 000.00)
(Note 7)
Education is the most powerful weapon which you can use to change the world
