FIN 3701 ASSIGNMENT 2
Johns Hopkins University
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FIN 3701 ASSIGNMENT 2
- Exam (elaborations) • 14 pages • 2021
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1.1 Calculate the business operating break-even point.
Monthly fixed costs = R4 000
Selling price per unit = R10 000 ÷ 1 500 figurines = R6.67
Variable cost per unit = R6
Break-even point =
=
= 5 970
6 000
1.2 Calculate the EBIT on the departmental store order.
Units sold 1 500
Price per unit [R10 000 ÷ 1 500 figurines] R6.67
Total Sales R10 000
Less: Fixed costs (R4 000)
Variable cost per unit (R6)
Total variable costs [R6 × 1 500 figurines] (R9 000)
Total Expense (R1...
Exam (elaborations)
FIN 3701 ASSIGNMENT 2
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1.1 Calculate the business operating break-even point. Monthly fixed costs = R4 000 Selling price per unit = R10 000 ÷ 1 500 figurines = R6.67 Variable cost per unit = R6 Break-even point = = = 5 970 6 000 1.2 Calculate the EBIT on the departmental store order. Units sold 1 500 Price per unit [R10 000 ÷ 1 500 figurines] R6.67 Total Sales R10 000 Less: Fixed costs (R4 000) Variable cost per unit (R6) Total variable costs [R6 × 1 500 figurines] (R9 000) Total Expense (R1...
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