MANAGEMENT ACCOUNTING

Answer the questions from the information provided. (20 Marks) 3.1 Use the information provided below to calculate the following independently: (15 marks) 3.1.1 Break-even quantity (4 marks) 3.1.2 Margin of safety (in Rands) (3 marks) 3.1.3 The total Marginal Income and Net Profit (Loss), if the selling price is reduced by 10%. (4 marks) 3.1.4 The selling price per unit that will enable the company to achieve a net profit of R480 000. (4 marks) INFORMATION Seata Ltd manufactures chairs. The following information was extracted from the budget for the month ended 31 March 2022: Sales 5 000 units Selling price per unit R300 Variable manufacturing cost per unit R105 Manufacturing overheads (all fixed) R240 000 Selling costs 25% of sales Administrative costs (all fixed) R300 000