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QUESTION 3 ( 2 5 MARKS ) REQUIRED Study the information provided by the child welfare organisation and answer the following questions independently. The expanded
QUESTION
MARKS
REQUIRED
Study the information provided by the child welfare organisation and answer the following questions
independently. The expanded contribution margin model must be used to answer questions and
Calculate the breakeven quantity.
Calculate the sales volume required to achieve an operating profit of R
Calculate the selling price per unit expressed to the nearest cent that will enable to
welfare organisation to achieve an operating profit of R per unit.
Suppose the selling price is decreased by R per unit with the expectation that this
would increase the sales volume by Is this a good idea? Motivate your answer with
the relevant calculations.
Calculate the margin of safety in units if the selling price drops to R per unit with the
expectation that the fixed costs can be reduced to R
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