QUESTION $1[10$ MARKS$]$

Use the information provided in the table below to answer the given questions

Selling Price R$25$

Variable Cost $15\%$ of selling price

Fixed Cost R$120000$

Expected sales $25000$ units

$1\mathrm{.}1$ Calculate the break$-$even point in units and the break$-$even value in Rand $(5)$

$1\mathrm{.}2$ Determine the margin of safety in units $(3)$

$1\mathrm{.}3$ What do you understand by the term break$-$even? $(2)$QUESTION $1$

$[10$ MARKS$]$

Use the information provided in the table below to answer the given questions

$1\mathrm{.}1$ Calculate the break$-$even point in units and the break$-$even value in Rand

$1\mathrm{.}2$ Determine the margin of safety in units

$1\mathrm{.}3$ What do you understand by the term break$-$even?