Refer to the three proposals that the company was considering to assist the previously disadvantaged women and answer each of the questions independently. $($You are advised to use the expanded contribution margin model to present your answers.$)$

$1.$ Based on the figures achieved for July to December $2022,$ calculate the selling price per litre that would have enabled the service station to break even.

$2.$ Based on the figures achieved for July to December $2022,$ how many litres of diesel would have had to be sold to achieve an operating profit of R$2$ per litre?

$3.$ Calculate the total Contribution Margin and Operating Profit$/$Loss per month if Proposal $1$ is implemented.

$4.$ How many litres of diesel need to be sold each month to achieve the operating profit of R$25000$ per month, if Proposal $2$ is accepted?

$5.$ Calculate the saving in monthly fixed costs that is necessary to yield an operating profit of R$30000$ if Proposal $3$ is accepted.In odition to the above, fre following iffometion is svalsbie:

Inlerim dividends peid in $2022$ amounted to R$456000.511600$ shares were in issue during $2022.$ The

nerket price per share was R$17\mathrm{.}25$ on $31$ December $2022.$

Duing $2022$ the marogenent of Capri Limited considered the scquistion a rew machine for puchase and

irstallation duing the second quarter of $2024$ with a desied rete of retum of $15\%.$ The machine will wet.

F$56000000$ eacluding import dubes of R$250000$ and will have a usefui lfe of five years. The mechine is

eapected to increase cash inflous by $F2000000$ per year but cash eqpenges wil incresse by R$300000$ per

yea: Deprecistion is calculated using the straight$-$line rethod.

As the end of December $2002$ the compeny was spproched by a group of previously dsadvartaged worren

who had opered a senvice station on $01$ July $2022,$ seling only desel. They nesded assistance in improving

F$14$ pee itre. The fixed oosts were R$135000$ per morth. Affer six morths of opening, the sales schieved was

$540000$ itres and the sales were alnost the same esch morth. To improve the perfomence, fre Capni

Limited considered the folowing proposals:

Propocal $1$

Customers will be allowed to purchase desel on credt. it is esimated that $60\%$ of the suenoge monthly sales

increses by $25\%$ as they are eapedsd to buy exclusively from this senice station. Sales volunes to

austoners who do not take abvartsge of the credil policy are expectied to rensin unchanged. Additonal costs

orising from fis proposal are expected to be:

Bed deste of $1\%$ of the sales value in respect of astamers who use the credit fality.

Fied sdminishstive costs of $R7500$ per morth.

Propozal $2$

An opersing proft of R$25000$ per monh would be the target. To achieve this the following changes are

suggestet

The seling price is reduced by $60\mathrm{.}30$ per lite.

Fis $075$ per north will be spert on sdvertsing.

Propocal $3$

The possibily of only apersing from $06$:$00$ to $22,00$ is being corsideved. This eavier clasing bine is expectsed

to resuli in a lass of sales on average of $12500$ lbes per morth. It is hoped that the saving in fred coets

resulting fom fe reduction in opereing hours will enable the ertheprenew to schieve an sversge morthly

operating profit of $R30000.$