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QUESTION 3 (9 marks) Nirvana Ltd sells one product, X100. The following Information is available: Sales price per unit R 145 Direct material cost per

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QUESTION 3 (9 marks) Nirvana Ltd sells one product, X100. The following Information is available: Sales price per unit R 145 Direct material cost per unit R 25 Direct labour cost per unit R 20 Variable manufacturing overhead cost per unit R 7 Fixed manufacturing overheads (total) R 450,000 Variable selling and administrative cost per unit R 10 Fbond selling and administrative costs (total) R 245,000 REQUIRED: The sales director has approached you with the following question: We are considering adding another product to our range (Y500). We aim to sell two X100s for every three Y500s sold. Y500 will sell at R45, with a contribution margin of 60M. Fixed costs are expected to increase by 20% if Y500 is added to production. Can you tell me how many units of X100 and Y500 we need to sell to make a profit before tax of R3 000 0DO

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