Question 2 The following is a summary of a manufacturing company's budgeted profit statement for its next financial year, when it expects to be operating at 75 per cent of capacity (9,000 units @32) 288,000 Sales Less: Direct 54,000 materials Direct wages 72,000 Production overhead: fixed 42,000 variable 18,000 (186,0 00) Gross profit 102,000 Less: Administration, selling and distribution costs fixed 36,000 varying with sales volume 27,000 63,00 Net profit 39,000 Required i. How can a company with multiple products cost-volume-profit analysis? use (2 marks) i. How can sensitivity analysis be used in conjunction analysis? (4 marks) cost-volume-profit with Required . How can a company with multiple products use cost-volume-profit analysis? (2 marks) i. How can sensitivity analysis be used in conjunction analysis? (4 marks) with cost-volume-profit ii. Identify and explain two assumptions on which cost-volume-profit analysis is based (4 marks ) ii. Calculate the break-even point in units and in (8 marks) revenue v. It has been estimated that if the selling price per unit were reduced to 28, the increased demand would utilise 90% of the company's capacity. You are required to re-draft the statement using a marginal format to show the effect. (7 marks) (Total marks) 25 A summary of a manufacturing company's budgeted profit statement for its next financial year, when it expects to be operating at 75 % of capacity, is given below (NS) (NS) Sales 9 000 units at N$32 288 000 Less: Direct materials 54 000 Direct wages Production overhead: 72 000 Fixed Variable 42 000 18 000 186 000 Gross Profit 102 000 Less: Administration, selling And distribution costs Fixed 36 000 27 000 Varying with sales volume 63 000 Net profit 39 000