QUESTION 3 Table 3 below shows the estimated costs of manufacturing a product on a normal production capacity: Table 3: Estimated unit cost of a product Cost (R) Direct material 450 Direct labour 100 Variable manufacturing overheads 22 Fixed manufacturing overheads 55 Variable selling administration 85 and distribution Fixed administration cost 175 www Calculate the selling price in each of the following cases below using cost-plus pricing method: 3.1 Mark up is 65% of variable production cost (3) 3.2 Mark up is 45% of production cost (3) 3.3 Mark up is 30% of variable cost (3) 3.4 Mark up is 28% of total cost (3) A cost and management inventory report for a production company as at 31 July 2021 shows the following: Table 4: Management Inventory report Units Expected sales in units in the next year 260 Desired units of ending inventory (at 5% of sales) 22 Units in beginning inventory You are required to: 3.5 Calculate the number of units to be produced in the year. (3) [15] 10