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Call Enterprises produces a single product. The following budgeted information for 2024 financial year is available: I he number of units expected to be produced
Call Enterprises produces a single product. The following budgeted information for 2024 financial year is available: I he number of units expected to be produced and sold during 2024 is 30 UUU Answer each of the following questions independently. 3.1 Calculate the total contribution margin and operating profit (loss) if all 30000 units are sold. (5 marks) 3.2 Calculate the margin of safety (as a percentage) for 2024 (6 marks) 3.3 Use the contribution margin ratio to calculate the sales value required to achieve an operating profit of R1 200000. . (7marks) 3.4 Suppose Callmore Enterprises is considering a R6 per unit decrease in the selling price of the product with the expectation that . (7marks) this would increase the sales volume by 10%. Is this a good idea? Motivate your answer with the relevant calculations
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