[Meisie]

Prepare the Income statement usng the marginalcosting method, using the following information:

Inventory on the 1 May 2011: Nil
Production: 27 000
Sales: 23 000

Fixed manufacturing costs: R120 000
Variable manufacturing cost per unit: R21
Selling Price per unit: R50
Marketing costs:
Advertising R6 000 per month
Sales personnel salaries & commision: R8 000 per month plus 5% of sales
Delivery costs: R5 per unit sold
Administration costs:
Salaries: R18 000
Other office costs: R7000 per month plus R3 per unit sold

[paraclete]

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