QUESTION 3 (10 marks; 18 minutes) Military Academy Convenience Store (MACS) controller prepared the following budgeted income statement for the coming year: Required: Sales R4 150 000 Total variable costs (3 029 500) Contribution margin 1 120 500 Total fixed costs Operating income (648 000) R472 500 3.1 Suppose MACS's actual revenues are R300 000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement. (3) 3.2 How much sales revenue must MACS earn to break even? Prepare a contribution margin statement to verify the accuracy of your answer. 3.3 Calculate MACS's expected margin of safety. 3.4 Calculate MACS's margin of safety if sales revenue is R3 800 000. (2) (3) 22 (2)