Calculate the sales value required to break even Calculate the margin of safety (as a percentage) fo

Calculate the sales value required to break even

Calculate the margin of safety (as a percentage) for 2018

Determine the sales volume required to achieve an operating profit of R1 200 000

Suppose Tiffany Ltd is considering a R20 per unit decrease in the selling price of the product, with the expectation that this would increase annual sales by 25% Calculate the total Contribution Margin and Operating Profit/Loss

Determine the variable costs per unit that would enable Tiffany Ltd to break even, if 28 500 units are produced and sold?

INFORMATION

Tiffany Ltd produces a single product The following budgeted information for 2018 is available:

Selling price per unit R400

Expected sales volume 28 000 units

Fixed manufacturing costs per year R960 000

Variable manufacturing costs per unit R152

Marketing costs:

Advertising and salaries per year R1 296 000

Sales commission 6% of selling price

Administration costs:

Salaries and other fixed costs per year R2 304 000