Khumalo Enterprises manufactures a single product, and the management accountant has produced the following budget: Production and sales are expected to be the 2000 units You are required to: (a) Calculate the Break-even (i) Determine the break-even volume (ii) Determine the margin of safety (4 marks) (4 marks) (b) Profit targets (i) Determine how many units must be sold to earn a profit of R320 000 . (ii) Determine how many units must be sold to earn a profit equal to 20% of sales revenue. (iii) Determine how many units be sold to earn an after-tax profit of R140 000, assuming that the tax rate is 30%. (iv) Determine how many units must be sold to earn an after-tax profit of R42 000 plus 11% of sales after tax, assuming that the tax rate is 30%. (4 marks) (4 marks) (5 marks) (c) Pricing decisions The company has recently conducted a market survey that revealed three possible outcomes: (i) If advertising was increased by R20 000, sales would increase from 1000 units to 2400 units. (ii) A selling price decrease to R450 would increase sales by 600 units. Fixed costs would, however, increase by R40 000 . (iii) A decrease in selling price by R60 and an increase in advertising by R20 000 will increase sales by 1000 units. Fixed costs will, however, increase by R20 000