QUESTION $3$

$(20$ Marks$)$

REQUIRED

Study the information given below and answer each of the following questions independently:

$3\mathrm{.}1$ Calculate the total Marginal Income and Net Profit$/$Loss if all the tables are sold.

$(4$ marks$)$

$3\mathrm{.}2$ Calculate the margin of safety $($in units$).$

$(4$ marks$)$

$3\mathrm{.}3$ Use the marginal income ratio to calculate the break$-$even value if the company spends an additional R$371300$ on advertising.

$(4$ marks$)$

$3\mathrm{.}4$ If $720$ units are sold and the fixed costs amount to R$969120,$ calculate the seling price per unit that will enable the company to break$-$even.

$(3$ marks$)$

$3\mathrm{.}5$ If the selling price decreases to R$1728$ per unit and the company wishes to eam a profit of R$280980,$ calculate the number of units that must be manufactured and sold.

$(5$ marks$)$

INFORMATION

Lyon Limited manufactures tables. The following information was extracted from the budget for the year ending $30$ June $2025$:

$\backslash$table$[[$Total production and sales $($units$),1800],[$Selling price per table,R$1800],[$Variable manufacturing costs per table,R$864],[$Fixed manufacturing overheads cost,R$324000],[$Other costs:,$],[$Sales commission per table,R$90],[$Fixed administrative and marketing costs,R$648900]]$