QUESTION 3 3.1 REQUIRED Calculate the following from the information provided below: 3.1.1 Break-even value using the marginal income ratio 3.1.2 Margin of safety (in units) 3.1.3 Break-even quantity if a sales commission of 20% is introduced. (20 Marks) (4 marks) (4 marks) (4 marks) INFORMATION Ascot (Pty) Ltd manufactures a single product and the following budget has been produced by the management accountant: Sales at R250 per unit Variable costs Fixed manufacturing, administrative and marketing costs All the units produced are expected to be sold. 3.2 REQUIRED R1 000 000 R600 000 R250 000 Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. (4 marks) 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION (4 marks) Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R30 each: Variable manufacturing cost Fixed manufacturing cost Variable marketing cost Fixed marketing and administrative cost R14 per unit R100 000 20% of sales R40 000