Question 2 (30 Marks) Jumba Limited manufactuers and sells potato crisps. The results for the year ended 31 December 2020 are as follows at a capacity utilisation of 80%: R Sales 400 000 96 000 48 000 Costs: Crisps Packaging Direct labour Manufacturing overheads (40% fixed) Operating expenses Fixed Variable 96 000 80 000 17 280 12 800 Due to various factors, management expects the following changes in costs during the 2020 financial year. Cool drink 11% increase Cans 5% decrease Direct labour 15% increase Manufacturing overheads - fixed R644 decrease The ratio of variable manufacturing overheads to direct labour will be maintained. Operating expenses will vary only according to the quantities sold No inventory is held Required: 1. Calculate the expected gross and net profit for 2020 if the [10 marks] selling price increases by 7.5% and the factory operates at 96% of the total capacity. ii. Calculate the expected sales and net profit for 2020 if the [12 marks] number of units sold increase by 10%, and the mark-up percentage based on the cost of sales increases by 3%. i. Calculate the break-even sales in value for 2020, based on [5 marks] alternative () above. iv. Determine the margin of safety ratio for 2020, based on [3 marks] alternative (b) above