3.

Direct materials

Direct labor

Distribution

Unit costs

Total variable cost

Production overhead

Non-production overhead

Addition non-prodcution overhead

Total incremental costs

Profit margin

Total sales revenue

50,000
2
12
10
24
1,200,000
1,200,000
600,000
175,000
3,175,000
635,000
3,810,000
76

100,000
2
12
10
24
2,400,000
2,400,000
1,200,000
200,000
6,200,000
930,000
7,130,000
71

150,000
2
12
10
24
3,600,000
3,600,000
1,800,000
200,000
9,200,000
920,000
10,120,000
67

4.3
Net profit before tax and interest to capital employed

ROCE =

* 100% = 20%

Net profit before tax and interest to sales

* 100% =

* 100% = 17.7%

Return on Equity

(ROE) =

= 11%

Net Assets Turnover =

= 1.47 times

Gross Profit Sale =

= 11%
=

Current ratio =

Quick ratio =

= 2.417

= 1.583

Stock turnover = 3.86

Average age of debtors =

Average age of stock =

Interest Cover =

Gearing =

= 45 days

= 94 days

= 8.3times

= 0.7 :1