Business, 12.09.2021 02:10 ericahale3971

(a) The following was extracted from the standard cost card of Kafue Cement Plc. Selling price 100kg pocket of cement K360
Direct material cost per 100kg pocket of cement K50
Direct labour cost per 100kg pocket of cement K50
Variable production overhead per 100kg pocket of cement K29
Other relevant cost information extracted from the budgets:
Fixed production costs K9,750,000
Fixed selling and distribution costs K3,456,000
Sales commission 5% of selling price
Sales 90,000 100kg pockets of cement
Required:
i. Calculate the breakeven point both in sales volumes (number of pockets) and sales value. (2 marks)
ii. Calculate the margin of safety both in percentage and in volume. (2marks)

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(a) The following was extracted from the standard cost card of Kafue Cement Plc. Selling price 100...

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