$4\mathrm{.}1$ REQUIRED

Calculate each of the following independently from the information provided below:

$4\mathrm{.}1\mathrm{.}1$ Break$-$even quantity and Break$-$even value

$4\mathrm{.}1\mathrm{.}2$ Margin of safety $($in Rands$)$

$(3$ marks$)$

$4\mathrm{.}1\mathrm{.}3$ Total Marginal Income and Net Profit$/$Loss $($using the marginal costing statement$)$ if the expected sales volume drops by $5000$ units.

$(4$ marks$)$

$4\mathrm{.}1\mathrm{.}4$ Break$-$even quantity if salaries increase by R$37500.$

$(3$ marks$)$

INFORMATION

Karole Enterprises sells a product for R$75$ per unit. $[$Unit costs are as follows:

$\backslash$table$[[$Direct materials cost,R$],[$Direct labour cost,R$24],[$Variable manufacturing overheads cost,R$12],[$Variable selling and administrative costs,R$3]]$

The annual total fixed manufacturing overhead costs and fixed non$-$manufacturing costs are R$750000$ and R $450000$ respectively. Expected sales are $45000$ units.