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Questions 10 to 16 refer to the following scenario: Joe's Trading (Pty) Ltd has provided the following information for a particular business unit of theirs,

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Questions 10 to 16 refer to the following scenario: Joe's Trading (Pty) Ltd has provided the following information for a particular business unit of theirs, selling widgets: Sales projection (units): 1,500 Sales projection (rands): 1,650,000 Variable cost per unit (rands): 800 Total fixed costs (rands): 270,000: What is the average selling price of a widget? Select one: a. R1,100 b. R1,500 c. R180 d. R800 e. R300 What is the marginal income per widget? Select one: O a. R1,500 O b. R1,100 O C.R300 0 d. R800 e. R180 How many widgets would they need to sell to break even? Select one: o a. 2,062.50 O b. 1,500 O c. 1,100 d. 245.45 e. 900 What is their margin of safety ratio? Select one: a. 26.67% O b. 66.67% c. 33.33% d. 40% e. 50%

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