Estimatimated sales for the year 2015 -7000 units at R40 each
Estimated costs for the year 2015-
Direct materials -R12 per unit
Credit labour- R2 per unit
Factory over heads (allfixed)-R24000 per annum
Selling expense -30% of sales
Administrative expenses (all fixed)-R32000 per annum
Question is?
Calculate the selling price per unit if the profit per unit is R2?
Calculate the new break -even quantity and value selling price is decreased by 10%?