QUESTION 3 (20 Marks) REQUIRED Study the information provided below and answer the following questions independently: 3.1 Use the contribution margin ratio to calculate the sales value required to break even. (4 marks) 3.2 Calculate the margin of safety in units. (4 marks) 3.3 If the ingredients cost 10% more than budgeted, calculate the total contribution margin and total operating profit/loss. (4 marks) 3.4 Suppose Chocolos Limited decides to add pecans to the ingredients at a cost of R2.40 per unit. It could then enable the company to charge R104 per box. If the sales volume decreases by 5%, determine the change in the contribution margin. (4 marks) 3.5 Calculate the number of units that must be sold to earn an operating profit of R198 512 if the fixed manufacturing overhead costs increase by 10% and direct labour costs decrease by 10%. (4 marks) INFORMATION Chocolos Limited produces chocolates. Each box of chocolates sells for R96. The budgeted costs to produce 35 000 boxes of chocolates for 2024 are as follows: Production costs: R Sugar 98 000 Other ingredients 714 000 Direct labour 252 000 Boxes 212 800 Fixed manufacturing overhead costs 100 000 Selling and administrative costs: Sales commission (2% of sales) 67 200 Salaries 192 000 Other fixed costs 59 360