Question
Refer to the forecasts made by the financial manager for 2023 and calculate the following independently. As far as possible, use the contribution margin format
Refer to the forecasts made by the financial manager for 2023 and calculate the following independently. As
far as possible, use the contribution margin format of the income statement to present your answers.
3.1. Break-even quantity. (5 marks)
3.2 The sales value required to make an operating profit of R2 016 000, by using the contribution margin ratio. (5 marks)
3.3 The percentage change in the operating profit (expressed to two decimal places), if the selling price and fixed costs increase by 10%. (5 marks)
3.4 The total Contribution Margin and Operating Profit/Loss if the sales volume is 10% below expectation. (5 marks)
3.5 The selling price per unit (expressed in rands and cents) that will enable the company to break even. (5 marks)
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