MAC3701 ASSIGNMENT 2 – SEMESTER 1. QUESTIONS WITH CORRECT AND VERIFIED ANSWERS. LATEST 2024 UPDATE. GUARANTEED A+ GRADE.

QUESTION 1 (a) Prepared water availability for 2019 financial year Litres Litres available from supplier 2 400 000 Normal Loss (120 000) Litres Available 2 280 000 Prepared Water Requirements Litres FizzyOrange 323 750 Can 148 500 Buddy 144 000 Jumbo 31 250 FizzyCola 2 098 750 Can 1 138 500 Buddy 945 000 Jumbo 15 250 Total Litres Required 2 422 500 Total Litres available (2 280 000) Shortfall 142 500 The available water (2 280 000 litres) will not be sufficient to meet demand of 2 422 500 litres resulting in a shortage of 142 500 litres. (b) Determination of Ranking for allocating the scarce resource FizzyOrange FizzyCola R R Selling Price Per Unit 8.70 8.70 Less Variable Cost Per Unit (4.136) (4.55) 0.45 0.648 0.288 0.36 0.54 0.9 0.80 0.15 0.45 1.08 0.36 0.27 0.54 0.9 0.80 0.15 Prepared Water Sugar ] Sodium Colourant Direct Labour Variable manufacturing overheads Other manufacturing Costs Variable Distribution Costs Contribution Per Unit Ranking 1 2 Optimum Production Plan Product Litres Calculation Units Total Available 1 008 000 FizzyOrange (144 000) 320 000 FizzyCola 864 000 1 920 000 (c) (i) Calculation of the Fixed Costs of the FizzyOrange R Distribution Costs 360 000 Other Budgeted Fixed Costs 510 000 1 700 000 Specific Fixed Costs Total Fixed Costs 2 570 000 Weighted Contribution per unit = Break – even units = Break – even units (Cans) = Break – even contribution (Cans) = =