QUESTION 2 A summary of Vytrill Inc.'s budgeted profit statement for next financial year, when it expects to be operating at 75 per cent of capacity, is given below. 020.00 A no rundable Sales 9 000 units at R640 Less: Direct materials Direct labour Production overhead Fixed Variable (20 Marks) R R 5 760 000 1 080 000 1 440 000 840 000 360 000 (3 720 000) Gross profit 2 040 000 Less: administration, selling and distribution costs Fixed Varying with sales volume 720 000 540 000 Net profit (1 260 000) 780 000 It has been estimated that: (i) if the selling price per unit were reduced to R560, the increased demand would utilise 90 per cent of the company's capacity without any additional advertising expenditure. (ii) to attract sufficient demand to utilise full capacity would require a 15 per cent reduction in the current selling price and a R100 000 special advertising campaign. REQUIRED 2.1 Calculate the breakeven quantity, based on the original budget. (4 Marks) 2.2 Calculate the profits and breakeven points which would result from each of the two- alternatives and compare them with the original budget. (16 Marks) QUESTION 3 (20 Marks) 3.1 You are the bookkeeper for a general medical practitioner, who submitted the following information for the month of March 2023: Personnel data: Hours worked Name Position Normal rate Normal Overtime N. Zwane Locum doctor R400 20 8 K. Patel Nurse R150 170 20 Y. Radebe Receptionist R50 170 22 20 Notes 1. Overtime is remunerated at one and half time the normal rate. 2 The general medical practitioner provides transport allowance 5% of the normal pay. 3. The following deductions are applicable: PAYE Pension Medical aid UIF 25% 7.5% R250 1% 396588 The general medical practitioner contributes 7.5% to pension and R250 monthly for medical aid. With the exception of PAYE and UIF, allowance, deductions, and contributions do not apply to the locum doctor REQUIRED Prepare a payroll showing all detailed information including the gross incomes, taxable incomes, deductions, Domes ungles aparata columns for each personnel and a final column of the total) (10 Marks) E ctri