MAC3701
ASSIGNMENT 2
DUE: 18 APRIL 2024
, MAC3701 Assignment 2
Due 18 April 2024
QUESTION 1
(a) Calculation
(a) Calculationof budgeted break
of budgeted eveneven
break salessales
unitsunis
per product type type
per product for the
for2023
the
2023 fnanciall
financial year year
Calculation
Calculationof of
Total
TotalFixed Costs
Fixed Costs
RR
Fixed
Fixed mmanufacturing
a n u f a c t u r i n g overheads
overheads 20 1100
20 000
00 0 00
Selling & distribution costs [3 000 000 + (24 000 + 16 000) * 50]
S e ll i n g & d i s t r i b u ti o n costs [3 000 000 + (24 000 + 1 6 0 0 0 ) 50] 1 0
11 000 000
00 0 00
Administrative
Administrative Costs
Costs 15 000 000
1 5 000 000
36 100 000
3 6 1 0 0 000
Calculation ofofContribution
Calculation Contributionperper unit
unit
E-MTB E-MTB E-CB E-CB
R R
I
R R
Sales
Sales 28 000
28 000 26 000
26 000
Less
Less Variable
V a r i a b l e Costs
Costs ((23
23 8 842.85)
42.85) (22 580.25)
(22 5 8 0 . 2 5 )
Aluminium
A l u m i n i u m [[(1.8 / 11 000
(1.8 / 000 42
* 42 0000); (1.5/
00); ( 1 000
1.5 I 1 000 42
* 42 000)]
000)] 75.60
7 5.60 63
63
Electric Motor
Electric Motor 3 800
3 800 3 800
3 800
Lithium
Lithium -— i ion
o n Battery
Battery 6 000
6 000 6 000
6 000
Various components [(1.1 * 1122 5500);
V a r i o u s components [ ( 1 . 1 (11 * 1122 500)]
0 0 ); ( 500)] 13 750
1 3 750 12 500
112 500
Direct labour ( * 105)
Direct l a b o u r ( 9 1 0 5 ) 157.50
1 5 7. 5 0 157.50
157.50
Variable manufacturing overheads ( * 13)
V a r i a b l e m a n u fa c t u r i ng o v e r h e a d s ( 1 3 ) 9.75
9 .7 5 9.75
9.75
Selling and d
S e l l i n g and distribution
i s t ri b u t i o n 50
50 50
50
Contribution
Contribution per per
unitunit 4 157.15
4157.15 3 419.75
34 1 9 . 7 5
mix
Sales mix = 24
= 000:
24 0 166 000
00: 1 000 =
= 3
3:2: 2
Weighted Contribution
Weighted Contribution =[(3/5* 4157.15) + (2/5 * 3 419.75)]
= [ ( 3 1 5 4 1 5 7 . 1 5 ) + ( * 3 4 1 9 . 7 5 ) ]
= R3 862.19
= R3 8 6 2 . 1 1 9
Break
Break. -- even
even point
point = (Total Fixed Costs / Weighted Contribution per unit)
= (Total Fixed Costs I Weighted C o n t r i b u t i o n per unit)
= (36 100 862.19)
= (36 100 0 0 8 6 2 . 1 9 )
= 9 348 units
= 9 348 u n i t s
ASSIGNMENT 2
DUE: 18 APRIL 2024
, MAC3701 Assignment 2
Due 18 April 2024
QUESTION 1
(a) Calculation
(a) Calculationof budgeted break
of budgeted eveneven
break salessales
unitsunis
per product type type
per product for the
for2023
the
2023 fnanciall
financial year year
Calculation
Calculationof of
Total
TotalFixed Costs
Fixed Costs
RR
Fixed
Fixed mmanufacturing
a n u f a c t u r i n g overheads
overheads 20 1100
20 000
00 0 00
Selling & distribution costs [3 000 000 + (24 000 + 16 000) * 50]
S e ll i n g & d i s t r i b u ti o n costs [3 000 000 + (24 000 + 1 6 0 0 0 ) 50] 1 0
11 000 000
00 0 00
Administrative
Administrative Costs
Costs 15 000 000
1 5 000 000
36 100 000
3 6 1 0 0 000
Calculation ofofContribution
Calculation Contributionperper unit
unit
E-MTB E-MTB E-CB E-CB
R R
I
R R
Sales
Sales 28 000
28 000 26 000
26 000
Less
Less Variable
V a r i a b l e Costs
Costs ((23
23 8 842.85)
42.85) (22 580.25)
(22 5 8 0 . 2 5 )
Aluminium
A l u m i n i u m [[(1.8 / 11 000
(1.8 / 000 42
* 42 0000); (1.5/
00); ( 1 000
1.5 I 1 000 42
* 42 000)]
000)] 75.60
7 5.60 63
63
Electric Motor
Electric Motor 3 800
3 800 3 800
3 800
Lithium
Lithium -— i ion
o n Battery
Battery 6 000
6 000 6 000
6 000
Various components [(1.1 * 1122 5500);
V a r i o u s components [ ( 1 . 1 (11 * 1122 500)]
0 0 ); ( 500)] 13 750
1 3 750 12 500
112 500
Direct labour ( * 105)
Direct l a b o u r ( 9 1 0 5 ) 157.50
1 5 7. 5 0 157.50
157.50
Variable manufacturing overheads ( * 13)
V a r i a b l e m a n u fa c t u r i ng o v e r h e a d s ( 1 3 ) 9.75
9 .7 5 9.75
9.75
Selling and d
S e l l i n g and distribution
i s t ri b u t i o n 50
50 50
50
Contribution
Contribution per per
unitunit 4 157.15
4157.15 3 419.75
34 1 9 . 7 5
mix
Sales mix = 24
= 000:
24 0 166 000
00: 1 000 =
= 3
3:2: 2
Weighted Contribution
Weighted Contribution =[(3/5* 4157.15) + (2/5 * 3 419.75)]
= [ ( 3 1 5 4 1 5 7 . 1 5 ) + ( * 3 4 1 9 . 7 5 ) ]
= R3 862.19
= R3 8 6 2 . 1 1 9
Break
Break. -- even
even point
point = (Total Fixed Costs / Weighted Contribution per unit)
= (Total Fixed Costs I Weighted C o n t r i b u t i o n per unit)
= (36 100 862.19)
= (36 100 0 0 8 6 2 . 1 9 )
= 9 348 units
= 9 348 u n i t s
