Details R

Sales $(120000$ calculators $($units$))96000000$

Less: Variable costs $24000000$

Contribution $72000000$

Less: Fixed costs $42000000$

Profit $30000000$

REQUIRED

Where applicable, round to two decimal places throughout your

calculations.

Marks

$($a$)$ Calculate Victory$$s break$-$even point number of calculators $($units$).$

$(5)$

$($b$)$ Briefly explain the meaning of the break$-$even point you have

calculated in $($a$)$ above, for Victory.

$(2)$

$($c$)$ Calculate Victory$$s break$-$even points in Rands $($revenue$).$

$(2)$

$($d$)$ Calculate Victory's margin of safety in percentage..

$(3)$

$($e$)$ Assume Victory's target profit is R$3$ million.

Calculate how many units should be sold to satisfy the desired profit.

$(3)$

$($f$)$ Assume the following:

$$ Variable cost per unit will decrease by $4\%$;

$$ Sales units will increase by $5000$ calculators;

$$ Sales revenue will decrease to R$95000000$; and

$$ Fixed cost will increase by R$600000.$

Calculate the percentage by which the break$-$even point will change.