3.1 Use the information provided below to calculate the following independently: (15 marks)

3.1.1 Break-even quantity (4 marks)

3.1.2 Margin of safety (in Rands) (3 marks)

3.1.3 The total Marginal Income and Net Profit (Loss), if the selling price is reduced by 10%. (4 marks)

3.1.4 The selling price per unit that will enable the company to achieve a net profit of R480 000. (4 marks

INFORMATION

Seata Ltd manufactures chairs. The following information was extracted from the budget for the month ended 31

March 2022:

Sales 5 000 units

Selling price per unit R300

Variable manufacturing cost per unit R105

Manufacturing overheads (all fixed) R240 000

Selling costs 25% of sales

Administrative costs (all fixed) R300 000