(20 Marks) QUESTION 1 REQUIRED Prepare the Income Statement of Mary's Manufacturers the year ended 31 December 2020 using the 1.1 Marginal costing method (10 Marks) 1.2 Absorption costing method (10 Marks) INFORMATION The following information was extracted from the accounting records of Mary's Manufacturers for the years ended 31 December 2020 and 31 December 2019: 31 December 2020 31 December 2019 Units R Units R Sales for the year 3500 ? 3700 666 000 Selling price per unit 200 180 Producton for the year 4 100 4 000 Finished goods at beginning of year ? NI Variable manufacturing costs per unit 50 45 Variable selling and administrative costs per unit 25 24 Fixed manufacturing costs per year 45 100 36 000 Fixed selling and administrative costs per year 24 000 25 000 Additional information 1. Mary's Manufacturers uses the FIFO mefhod for the valuation of inventory. 2. The increase in the fixed manufacturing costs is due to a new rental agreement in respect of the factory. QUESTION 2 (10 Marks) REQUIRED Use the information provided below to answer each of the following questions independently: 21 Calculate the break-even quantity. 22 Calculate the sales value required to achieve a net profit of R150 000, using the marginal (2 Marks) income ratio 23 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks) (4 Marks) INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021 1 Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. ixed manufacturing overheads 200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales END OF PAPER