Jam Manufacturers produces ornamental doors that that sell for R500 each. The cost of

producing and selling 1 000 units are estimated as follows:

Variable costs per unit:

Direct materials R40

Direct labour R24

Factory overheads R20

Selling expenses R16

Fixed costs:

Factory overheads R10 000

Administrative expenses R20 000

Required:

Calculate the following:

4.1 Marginal income per unit. (3 Marks)

4.2 Break-even quantity. (3 Marks)

4.3 Margin of safety in terms of units. (4 Marks)

4.4 The number of units to be sold to achieve a target profit of R500 000. (5 Marks)

4.5 The target sales value to achieve a profit of R750 000. (5 Marks)