Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 3 (20 Marks) [OFFICIAL] REQUIRED Refer to the information given below and answer each of the following questions independently: 3.1 Calculate the margin of

image text in transcribed QUESTION 3 (20 Marks) [OFFICIAL] REQUIRED Refer to the information given below and answer each of the following questions independently: 3.1 Calculate the margin of safety (in units). (4 marks) 3.2 Calculate the total Contribution Margin and Operating Profit/Loss if an increase in the salaries expense of salespersons by R480000 is expected to increase sales by 450 units. 3.3 Suppose Sinclair Limited decided to set the sales price at R1 728 per unit. If sales drop (3 marks) to 3500 units, how much more can the company spend on advertising and be able to generate an operating profit of R 1000000 ? (4 marks) 3.4 Should management consider a drop of R60 per unit in the selling price if the sales volume is expected to increase to 4400 units? Motivate your answer with the relevant calculations. (4 marks) 3.5 Determine the selling price per unit that will enable the company to achieve an operating profit of R1 602000 . (5 marks) INFORMATION

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing The Art and Science of Assurance Engagements

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones

13th Canadian edition

133405508, 978-0133405507

More Books

Students also viewed these Accounting questions

Question

LO 22-1 How do people use language?

Answered: 1 week ago