1.1 & 1.2 please

QUESTION 1 [25] Bongani Limited manufactures a product that sells for R120. He manufactured and sold 12 500 units during the previous month. The following additional information, for this activity level, is available: Total direct material cost Direct labour cost per hour Direct labour hours needed per product Total variable manufacturing overheads Sales commission (of the selling price) Total fixed manufacturing overheads Other fixed costs in total R281 250 R12 1% R112 500 2%% R360 000 R420 000 Required: 1.1 Calculate Bongani's net profit for the month. Compile a marginal income statement to represent your answer. (8) 1.2 The workers at Bongani's plant threaten to strike if they do not receive a pay increase of 10%. The sales people want a commission of 3%. The only supplier of the direct material has increased its price by 5% per unit. All other factors remain the same as for the current month. a) Calculate the new breakeven units. Compile a marginal income statement to represent your answer. (12) b) Calculate the margin of safety ratio for Bongani Ltd