Question
QUESTION 3 (25 Marks) 3.1 REQUIRED Calculate the following: 3.1.1 Break-even quantity. (5) 3.1.2 Break-even value using the marginal income ratio. (4) 3.1.3 Margin of
QUESTION 3 (25 Marks) 3.1 REQUIRED Calculate the following: 3.1.1 Break-even quantity. (5) 3.1.2 Break-even value using the marginal income ratio. (4) 3.1.3 Margin of safety (in terms of units). (4) 3.1.4 Expected total marginal income and net profit. (5) INFORMATION Sammy Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales Selling price per calculator Variable production cost per unit Fixed production costs Variable selling and administrative costs per unit Fixed selling and administrative costs 10 400 units R350 R216 R154 000 R29 R82 000 3.2.Required Calculate the following from the information provided below: 3.2.1.Net profit or loss (3) 3.2.2.The number of units that must be sold to obtain a profit of R1 000 000. (4) INFORMATION The following projected figures were obtained from Drake Traders: R Sales (50 000 units @ R24) 1 200 000 Variable cost 280 000 Fixed cost 88 600
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