Back Up (Pty) Ltd is a company that manufactures and sells a single productthe Back Up Flash DriveThe following is the Statement of Comprehensive Income for the company's financial yearending 31 December 2022:

Ignore taxation and inflation for all questions below.

1.Calculate the margin of safety ratio percentage by using the actual production figures in the Statement of Comprehensive Income for Back Up (Pty) Ltd's financial year ending 31 December 2022.

2. Determine the effect on the net income if the Managing Director's analysis is taken into account i.e., at the increased sales level. answer in a projected Contribution Statement of Comprehensive Income format.

3. Calculate the number of units that must be sold in order to generate a net profit of R 2 555 000 after taking into account the information in the Managing Director's analysis and your answer to question 2

Additional information: Back Up (Pty) Ltd has the capacity to produce 100000 units per annum. Managing Director's analysis: The Managing Director of Back Up (Pty) Ltd believes that that company could increase the sales by 20000 Flash Drives in the next Financial year if the product is advertised more often. This would result in an increase in advertising expenditure by R60 000. Given that a higher volume of products will have to be manufactured and therefore purchased, the supplier of direct material will be willing to give a 5% discount on all material purchases at the new production level. Further, another supervisor will be hired to assist with the supervision of the additional production. The additional supervisor will receive an annual remuneration of R150000