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Magic Sun Company sells a product for R50. The variable cost for the product is R30 and the fixed costs for the period amount to

Magic Sun Company sells a product for R50. The variable cost for the product is R30 and the fixed costs for the period amount to R2 750 000. Magic Sun Company sold 150 000 units for this period.

You are required to answer the following questions regarding the Magic Sun Company:

  1. Provide the marginal income statement for Magic Sun Company. (5 marks)
  2. Calculate the break-even value. (3 marks)
  3. Calculate the contribution per unit. (2 marks)

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