QUESTION 3 (20 MARKS)

3.1 REQUIRED Calculate the following from the information given below:

3.1.1 Break-even quantity (3 marks)

3.1.2 Break-even value using the marginal income ratio (4 marks)

3.1.3 Margin of safety (in Rands) (3 marks)

3.1.4 Total Marginal Income and Net Profit/Loss if the sales price is reduced to R90 per unit. (4 marks)

INFORMATION Dynamo Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales volume 20 000 units Selling price per unit R100 Variable manufacturing cost per unit R50 Variable marketing cost per unit 10% of the unit selling price Fixed manufacturing cost R400 000 Fixed administration and marketing costs R200 000