FIN3701 ASSIGNMENT 2 SEMESTER 1 1.5 At this time, lollies come in 15 different varieties. Whereas the average variable cost per unit is R6,00, the actual cost varies from unit to unit. What recommendation would you have for Johan with regard to pricing an

FIN3701 ASSIGNMENT 2 SEMESTER 1 ,QUESTION 1 1.1 Calculate the business operating break-even point. 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 = = = 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 (R13 000) EBIT [R10 000 – R13 000] (R3 000) 1.5 At this time, lollies come in 15 different varieties. Whereas the average variable cost per unit is R6,00, the actual cost varies from unit to unit. What recommendation would you have for Johan with regard to pricing and /or the numbers and types of units that they offer for sale? If the lollies come in 15 different varieties and the average variable cost per unit is R6.00; the units sold should cover the break-even point and break-even cost