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Murumba ( Pty ) Ltd ( Murumba ) manufactures and sells car brake pads. Murumba produced its 2 0 2 4 financial year budget based

Murumba (Pty) Ltd (Murumba) manufactures and sells car brake pads. Murumba produced its 2024 financial year budget based on the assumption that the entity would be able to sell the brake pads for R6000 each. The variable cost of each brake pad was projected at R3000, and the annual fixed costs were budgeted at R1300000. Murumbas fixed costs accrue evenly during the financial year.The entity requires a profit of R3000000 for the financial year in order to meet its target return on capital: R1000000 in the first six months and R2000000 in the remaining six months.The entity normally expects its sales to rise during the second quarter of the financial year. However, the June 2024 management accounts show that sales volumes were not in line with expectations. During the first six months of the 2024 financial year, variable costs were as projected, but at the budgeted selling price of R6000, only 250 units had been sold.Additional informationTo ensure that the entity still meets its required profit of R2000000 for the remaining six months, the following mutually exclusive alternative plans of action were developed:
Plan A: Reduce the selling price by 10%. The sales director believes that this will generate sales of 2700 units during the remaining six months of the financial year. Total fixed costs and variable costs per unit will not be affected and will remain as budgeted.
Plan B: Reduce variable costs per unit by 12,5% through the use of less expensive raw materials. Fixed costs will not be affected. This will allow the selling price to be reduced by 7,5%. Based on the reduced selling price and variable costs, the sales director believes that sales of 2200 units will be achieved during the remaining six months of the financial year.
Plan C: Reduce fixed costs by R130000 per annum. This will allow the selling price to be reduced by 5%. Variable costs per unit will not be affected. Based on the reduced selling price, the sales director believes that sales of 2000 units will be achieved during the remaining six months of the financial year.
Required:
For each of the three alternative plans (plans A, B and C) of action: Calculate the number of units required to be sold during the remaining six months of the 2024 financial year in order for Murumba (Pty) Ltd to achieve its profit objective of R2000000.

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