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4 4.1 Study the information given below and answer the following questions independently INFORMATION: Banco Limited produces a single product. The following budgeted information for
4 4.1 Study the information given below and answer the following questions independently INFORMATION: Banco Limited produces a single product. The following budgeted information for 2021 is made available: Variable manufacturing costs per unit R85.24 Selling price per unit Fixed manufacturing costs Marketing Costs Administration costs R246 R4 552 000 R648 000 plus 6% of sales R320 000 plus R8 per unit sold The number of units expected to be produced and sold during 2021 is 45 000. 4.1.1 Calculate the expected break-even quantity for 2021 Calculate the sales volume required to achieve an operating profit of R2 4848 000 4.1.2 4.1.3 Suppose Banco Limited is considering a decrease of R18 per unit in the selling price of the product, With the expectation that this would increase the sales volume by 10%. Is this a good idea? Motivate your answer (6 marks) (6 marks) (6 marks)
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