QUESTION ONE (20 Marks) INFORMATION Busta Limited plans to manufacture bar fridges and the following information is applicable:

Estimated sales for the year - 5 000 units at R3 400 each

Estimated costs for the year: Variable costs Direct Material - R520 per unit Direct Labour - R350 per unit Variable Manufacturing Cost - R110 per unit Selling expenses - 6% of selling price per unit sold Factory overheads (all fixed) - R625 000 Administrative expenses (all fixed) - R462 000

REQUIRED: 1.1 Calculate the total net profit for the estimated figures. (3 marks) 1.2 Calculate the break-even quantity (3 marks) 1.3 Calculate the break-even value (2 marks) 1.4 Calculate the break-even value using the marginal income ratio. (3 marks) 1.5 Calculate the target sales volume to achieve a profit of R920 500.. (3 marks) 1.6 Calculate the new break-even quantity and value if the selling price is increased by 12% (4 marks) 1.7 Calculate the margin of safety in units at the original budgeted volume and price (2 marks)