QUESTION 1 Tantan Ltd manufactures plastic tables. The following information was extracted from the budget for the year ending 30 September 2014: R 120 80 40 1. Total production capacity (100%): 1 000 units 2. Selling price per table : R500 3. Variable production cost (per table) - Direct material... - Direct labour... - Overheads..... 4. Fixed production overheads 5. Selling and administrative expenses - Salary of sales manager for the year.. - Sales commission: 5% 6. Income tax rate.. 7. Stock on hand at 1 October 2013 90 000 60 000 30% Nil REQUIRED: (CONSIDER EACH OF THE FOLLOWING SITUATIONS- INDEPENDENTLY) (a) Calculate the budgeted break-even value by using the marginal income ratio if the company spends R145 000 on advertising. (b) Calculate the budgeted break-even selling price per unit if 600 units Are sold. (c) Calculate the number of units which must be manufactured and sold if the selling price decreased to R480 per unit and the company Wishes to earn an after tax profit of R56 940. (d) Calculate the variable cost per unit if the fixed costs and the selling price per unit remains unchanged but the break-even quantity changes to 600 units