Question
REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity (3 marks) 3.1.2 Break-even value using the marginal income ratio (4 marks) 3.1.3
REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity (3 marks) 3.1.2 Break-even value using the marginal income ratio (4 marks) 3.1.3 Margin of safety (in Rands) (3 marks) 3.1.4 Total Marginal Income and Net Profit/Loss if the sales price is reduced to R90 per unit. (4 marks) INFORMATION Dynamo Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales volume 20 000 units Selling price per unit R100 Variable manufacturing cost per unit R50 Variable marketing cost per unit 10% of the unit selling price Fixed manufacturing cost R400 000 Fixed administration and marketing costs R200 000 3.2 REQUIRED Calculate the following from the information provided below: 3.2.1 The total variable costs if 12 000 units are sold. (2 marks) 3.2.2 The number of units that must be sold to earn a net profit of R120 000, if the selling price is reduced by 10% and the variable cost per unit determined in question 3.2.1 remains unchanged. (4 marks) INFORMATION Simplex Limited, which manufactures only one product, provided the following information: Fixed costs per annum R602 400 Selling price per unit R180 Marginal income per unit R60
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