Q3:

Vision Works (Pty) Ltd is a sunglasses manufacturer. Management is eager to increase the profitability of their aviator sunglasses range.

The following data relates to its aviator sunglasses range for the month of October 2023:

Additional information Sales for October amounted to R1 665000 based on production and sales units of 900 units. Fixed selling and administrative costs amounted to R500 000 . REQUIRED a) Calculate the contribution per unit. (3) b) Calculate the contribution margin ratio. (2) c) Calculate the break-even (units). (3) d) Calculate the break-even (value). (2) e) Calculate the margin of safety in units. (2) f) Calculate the sales in units to achieve a profit of R 1500000 .(3) Show all your workings, where necessary round-off to two (2) decimal places