QUESTION THREE [30] Leather Co (Pty) Ltd produces a stylish yet affordable wallet that sells for R30 per unit. Variable costs to manufacture and sell are R16 per unit. Fixed costs and expenses are budgeted at a total of R 54 600 per year. Required: 3.1 Discuss the concept 'contribution margin.' (5) 3.2 Calculate the break-even value in Rands. (5) 3.3 Calculate the income to be expected on sales of R240 000. (5) 3.4 Calculate the sales revenue required to produce net income of R7 000. (5) 3.5 3.6 If fixed costs were to be increased by R 25 760, calculate the increase in sales revenue that would be required to cover the increase in fixed costs. If the selling price is decreased by 20%, what percentage increase in the number of units sold is necessary to offset this decrease in selling price. (5) (5)