Mac3701 Assignment 2 Of Semester 1. Questions With Correct And Verified Amswers.

QUESTION 1 a. Calculate EDD’s budgeted break-even sales units per product type for the 2022 financial year. Ignore the implications, if any, of opening- and closing inventory. Break-even in units = Total fixed costs/Contribution per unit Break even units for Bolt = ( + )/61454 = 6 015 742 Units Break even units for Nerd = ( + )/ 5.9308 = 7 165 980 units CALCULATIONS Cost per ml of water Cost per Litter = R2 Cost per ml = R2/1000 = R0.002 Cost caffeine milligram Cost of 100g = R162 Cost of 1g = R162/100 = R1.62 Cost of mg = R1.62/1000 = R0.00162 Cost of Taurine per mg Cost of 100g = R175 Cost of 1g = R175/100 = R1.75 Citrus quantity for Bolt Per 1 litter = 0.2ml 1 unit (250ml) = 0.2/4 = 0.05ml Citrus quantity for Nerd Per 1 litter = 0.2ml 1 unit (500ml) = 0.2/2 = 0.1ml Price of Citrus per ml Per 20 ml = R40 Per 1 ml = R40/20 = R2 Time to manufacture Unit of Bolt 1 litter = 10 minutes 250ml = 10/4 = 2.5 Minutes Time to manufacture Unit of Nerd 1 litter = 8 minutes 500ml = 8/4 = 2 Minutes Labour cost in minutes Hour rate = R30 Minute rate = R30/60 = R0.5 Machine hours per Unit of Bolt 1 Litre = 12 /60 = 0.2 Hours 250ml = 0.2/4 = 0.05 Hours Machine hours per Unit of Nerd 1 Litre = 12 /60 = 0.2 Hours 500ml = 0.2/2 = 0.1 Hours Artificial sweetener for Nerd 1 Litre = 0.11kg 500ml = 0.11/2 = 0.055kg Calculation of budgeted Variable cost for Bolt Material Type Quantity Standard Unit Price Total Water 900ml R0.002 R1.8 Sugar 0.16kg R25 R4 Caffeine 80mg R0.00162 R0.1296 Taurine 1g R1.75 R1.75 Citrus 0.05ml R2 R0.1 Total material cost R7.7796 Labour Manufacturing 2.5 minutes R0.5 R1.25 Idle time (10%) 0.25 minutes R0.5 R0.125 Total labour cost R1.375 VMO Machine hours 0.05 hours R12 R0.60 Selling and distribution R1.10 TOTAL VARIABLE COST R10.8546 Material Type Quantity Standard Price Unit Total Water 900ml R0.002 R1.80 Artificial Sweetener 0.055kg R162 R8.91 Caffeine 160mg R0.00162 R0.2592 Taurine 2g R1.75 R3.50 Citrus 0.1ml R2 R0.20 Total Material Cost R14.6692 Manufacturing 2 minutes R0.5 R1.00 Idle Time 0.2 minutes R0.5 R0.10 Total Labour Cost R1.10 VMO Machine Hours 0.1 hours R12 R1.20 Selling And Distribution R1.10 TOTAL VARIABLE COST R18.0692 Allocation of Fixed Manufacturing Overhead (FMO) FMO products based on the budgeted machine hours to manufacture liters of energy drink Production is at a rate of two cans of Bolt (250ml) for every one can of Nerd (500ml). Hencetotal litres produced of Bolt are equal to total litters produced of Nerd Fixed Manufacturing Overheads for Bolt ½ x R = R Fixed Manufacturing Overheads for Nerd ½ x R = R