QUESTION $2$

COST$-$VOLUME$-$PROFIT ANALYSIS

ROADHAWK, manufactures a variety of automobile tyres. The following information

relates to proposed production of the new "GRIPTON $"$ tyre to be launched in December

$2024.$

INFORMATION :

REQUIRED :

$2\mathrm{.}1.$ Prepare the Marginal Income Statement for December $2024.$

$2\mathrm{.}2.$ Calculate the Break$-$even Quantity.

$2\mathrm{.}3.$ Determine the sales required to attain a target profit of R$3500000.$

$2\mathrm{.}4.$ Calculate the Break$-$even Quantity if only the Fixed costs are inc reased

by $12\%.$

$2\mathrm{.}5.$ Calculate the break$-$even quantity if only the Variable costs are decreased

by $10\%.$