MANAGEMENT ACCOUNTING
NOVEMBER 2021
MEMORANDUM
PREPARED BY: MTHOMBENI
0767297208
, QUESTION 1
1.1 Net profit
R
Sales(5000XR3400) 17000000
Variable costs (5920000)
(R520+R350+R110+R204X5000)
Marginal income 11080000
Fixed costs (R625000+R462000) (1087000)
Net profit 9993000
1.2 Break-even quantity
Break-even quantity = Total fixed costs
Marginal income per unit
= R1087000
R3400-R1184
= 491 units
1.3 Break-even value
Break-even quantity X Selling price per unit
491 X R3400
R1669400
1
NOVEMBER 2021
MEMORANDUM
PREPARED BY: MTHOMBENI
0767297208
, QUESTION 1
1.1 Net profit
R
Sales(5000XR3400) 17000000
Variable costs (5920000)
(R520+R350+R110+R204X5000)
Marginal income 11080000
Fixed costs (R625000+R462000) (1087000)
Net profit 9993000
1.2 Break-even quantity
Break-even quantity = Total fixed costs
Marginal income per unit
= R1087000
R3400-R1184
= 491 units
1.3 Break-even value
Break-even quantity X Selling price per unit
491 X R3400
R1669400
1