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MAC3701 Assignment 2 Semester 1 - 2023 (SOLUTIONS)
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MAC3701 Assignment 2 Semester 1 - 2023 (SOLUTIONS)
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,QUESTION 1a. Calculate EDD’s budgeted break-even sales units per product type for the 2022
financial year. Ignore the implications, if any, of opening- and closing inventory.
Break-even in units = Total fixed costs/Contribution per unit
Break even units for Bolt = (17 500 000 + 25 000 000)/61454 = 6 015 742 Units
Break even units for Nerd = (17 500 000 + 25 000 000)/ 5.9308 = 7 165 980 units
CALCULATIONS
Cost per ml of water
Cost per Litter = R2
Cost per ml = R2/1000 = R0.002
Cost caffeine milligram
Cost of 100g = R162
Cost of 1g = R162/100 = R1.62
Cost of mg = R1.62/1000 = R0.00162
Cost of Taurine per mg
Cost of 100g = R175
Cost of 1g = R175/100 = R1.75
Citrus quantity for Blot
, Per 1 litter = 0.2ml
1 unit (250ml) = 0.2/4 = 0.05ml
Citrus quantity for Nerd Per 1 litter = 0.2ml 1 unit (500ml) = 0.2/2 = 0.1ml
Price of Citrus per ml
Per 20 ml = R40
Per 1 ml = R40/20 = R2
Time to manufacture Unit of Bolt 1 litter = 10 minutes 250ml = 10/4 = 2.5 Minutes
Time to manufacture Unit of Nerd 1 litter = 8 minutes 500ml = 8/4 = 2 Minutes
Labour cost in minutes
Hour rate = R30
Minute rate = R30/60 = R0.5
Machine hours per Unit of Bolt 1 Litre = 12 /60 = 0.2 Hours 250ml = 0.2/4 = 0.05 Hours
Machine hours per Unit of Nerd
1 Litre = 12 /60 = 0.2 Hours 500ml = 0.2/2 = 0.1 Hours
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