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Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products.

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Patch Ltd has various lines of business. The General Manager has requested you to show how to deal with the given situations, for different products. (b) The company intends to sell its own label wine for Rs20 a bottle. It expects labour and materials will cost about Rs12 a bottle. Fixed costs should be Rs20,000 a month. (1) (ii) Calculate the contribution margin per unit. (1 mark) Calculate the sales quantity and revenue required each month in order for Sapphire to break even. (2 marks) If fixed costs were to decrease by 10 per cent, calculate the new break-even point and revenue. (2 marks)

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