QUESTION 3 (20 Marks) REQUIRED Study 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 the direct materials are expected to cost R30 per unit more and fixed manufacturing overhead costs are 10% greater than projected. (4 marks) 3.3 Calculate the variable cost per unit to break even, if the fixed costs and selling price per unit remain the same but the break-even quantity changes to 6 000 units. (4 marks) 3.4 Use the contribution margin ratio to determine the level of sales in Rands required to obtain an operating profit of R1 950 000. (4 marks) 3.5 Alpha Limited wants to eliminate the variable selling expenses by employing a salaried sales force. If the company sells 14 250 units, how much could it pay in salaries to the sales staff and still have a profit of R16 800 000? (4 marks) INFORMATION Alpha Limited manufactures and sells its own brand of guitars. Each guitar sells for R3 000 and the company expects to sell 12 000 guitars during 2023. The financial manager has provided the following projected data for 2023: Manufacturing costs: Direct materials cost R6 120 000 Direct labour cost R2 880 000 Fixed manufacturing overhead costs R3 600 000 Variable manufacturing overhead costs R2 520 000 Selling and administrative expenses: Variable selling expenses R1 080 000 Fixed selling and administrative expenses R2 250 000 QUESTION 4 (20 Marks) REQUIRED Prepare the Pro Forma Statement of Financial Position of Questor Enterprises as at 31 October 2022. INFORMATION The following information was provided by Questor Enterprises to assist in determining its financial position as at 31 October 2022: The sales for the year ended 31 October 2021 was R800 000. The sales are expected to increase to R1 000 000 for the year ended 31 October 2022. 50 000 ordinary shares at R1.50 each are expected to be issued on 30 November 2021. A planned purchase of equipment during December 2021 is estimated at R380 000. Depreciation for the year ended 31 October 2022 is expected to be R60 000. The after-tax return on sales is forecast at 20%. A final dividend of 80% of the profit after tax is expected to be declared and it is payable during December 2022. Company tax for the year ended 31 October 2022 is estimated to be R85 000. Provisional tax payments amounting to R77 000 are expected to be made during the year ended 31 October 2022. The percentage-of-sales method must be used for the current assets and accounts payable. The amount of external funding required (non-current liabilities) must be calculated. The Statement of Financial Position at the end of October 2021 is as follows: Statement of Financial Position as at 31 October 2021 R ASSETS Non-current assets Property, plant and equipment 200 000 Current assets Inventories 128 000 Accounts receivable 200 000 Cash and cash equivalents 32 000 Total assets 560 000 EQUITY AND LIABILITIES Equity Ordinary share capital 400 000 Retained earnings 40 000 Non-current liabilities - 0 Current liabilities Accounts payable 120 000 Total equity and liabilities 560 000