2.2 Tshifhiwa Limited provides you with the following information: Selling price per unit R79.00 Variable manufacturing cost per unit: Direct material R12.50 Direct labour R23.60 Manufacturing overhead R14.90 Total fixed manufacturing cost: Manufacturing overheads R95 000 Non-manufacturing cost: Fixed marketing cost R30 000 Fixed administration cost R45 000 Sales commission 5% of the selling price per unit 3 Required: Determine the following: a) b) How many units must Tshifhiwa Limited sell to break even? What is the break-even sales value? Compile a complete marginal income statement in determining the break even units, (5 marks) Refer to (1). What is the margin of safety units if Tshifhiwa Limited sells 6 950 units during that period? What is the use of margin of safety ratio? (5 marks) 10% decrease in selling price will bring competitive advantage to Tshifhiwa Limited and increase the sales volume to 9 500 units compared to current sales volume of 7 500. Will this increase in sales volume lead to the increase of profits? Compile a marginal income statement and show any other calculations necessary to justify your findings. Assume this to be the only change, (10 marks) c) NB: treat each of the above questions (i to lid) independently, unless stated otherwise