ANSWER ALL QUESTIONS

Botswana diaries (Pvt) Ltd, sells a single product which has the following information;

	Price per unit P	Price per unit P
Selling Price		120
Direct Material	22
Direct Labour	36
Variable overhead	14
Fixed Overhead	12
Total cost		84
Net profit		36

The fixed overhead in total amounted to P24 000. Budgeted sales for next month are 2 200 units.

You are required to calculate:

1. The breakeven point, in sales units per month (5 marks)
2. The margin of safety for next month (5 marks)
3. The budgeted profit for next month (5 marks)
4. The sales required to achieve a profit of P96 000 in a month (5 marks)