Assignment 1 QUIZ Semester 1 2026
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Due Date: 26 March 2026
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, MAC3701-26-S1 Welcome Message Assessment 1
QUIZ
Question 1
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Lebo Ndlovu (“LN”) is has a small online fabric shop specialising in dressmaking fabrics. She sells two types of fabric,
measured and sold per metre. She has asked for your assistance with the management accounting aspects of her business
and provided you with the following budgeted information:
Details Cotton Premium Total
Linen
R R R
Annual Target Profit 120 000
Selling Price per meter 120 180
Fabric Purchase cost per meter 60 90
Labour cost per hour 48 48
Variable cutting and packaging cost per meter 8 12
Monthly shop rental 3 600
Monthly utilities 1 200
Monthly insurance 900
Monthly Website hosting 750
Additional Information:
· For every 1 metre of premium linen sold, LN expects to sell 3 metres of cotton fabric.
· Cotton Fabric requires 4 minutes of labour per meter, and Premium Linen Fabric requires 6 minutes of labour per meter.
· Variable selling cost are 2,5% of the selling price
LN’s budgeted annual total fixed costs to be used in the calculation of the break-even point are:
a. None of the options
b. R6 450
c. R66 600
d. R68 400
e. R77 400
Clear my choice