, QUESTION 1
Q U E S TI O N 1
(a) Calculation of budgeted break even sales units per product type for the 2023
(a) C a l c u l a t i o n of budgeted break even sales u n it s per product type for the 2 0 2 3
financial
fi n a n c i a l l year
year
Calculation of Total
C a l c u l a t i o n of Total Fixed 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 of Contribution per unit
C a l c u l a t i o n of C o n t r i b u t i o n per u n i t
E-MTB
E-MTB E-CB
E-CB
R R
I
RR
Sales
Sales 28 000
28 000 26 000
26 000
Less
Less Variable
V a r i a b l e Costs
Costs (23 842.85)
(23 842.85) (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 per unit
C o n t r i b u t i o n per u n i t 4 157.15
4157.15 3 419.75
43
19.75
Sales mix
S a l e s mix = 24
= 000:
24 0 166 000
00: 1 000 =
= 3
3:2: 2
Weighted Contribution
Weighted C o n t r i b u t i o n =[(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 - even
Break. - even p
point
oint = (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
Q U E S TI O N 1
(a) Calculation of budgeted break even sales units per product type for the 2023
(a) C a l c u l a t i o n of budgeted break even sales u n it s per product type for the 2 0 2 3
financial
fi n a n c i a l l year
year
Calculation of Total
C a l c u l a t i o n of Total Fixed 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 of Contribution per unit
C a l c u l a t i o n of C o n t r i b u t i o n per u n i t
E-MTB
E-MTB E-CB
E-CB
R R
I
RR
Sales
Sales 28 000
28 000 26 000
26 000
Less
Less Variable
V a r i a b l e Costs
Costs (23 842.85)
(23 842.85) (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 per unit
C o n t r i b u t i o n per u n i t 4 157.15
4157.15 3 419.75
43
19.75
Sales mix
S a l e s mix = 24
= 000:
24 0 166 000
00: 1 000 =
= 3
3:2: 2
Weighted Contribution
Weighted C o n t r i b u t i o n =[(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 - even
Break. - even p
point
oint = (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
