Answered step by step
Verified Expert Solution
Question
1 Approved Answer
REQUIRED Refer to the information given below and answer each of the following questions independentty: 3.1 Calculate the margin of safety (in units). (4 marks)
REQUIRED Refer to the information given below and answer each of the following questions independentty: 3.1 Calculate the margin of safety (in units). (4 marks) 3.2 Calculate the total Contribution Margin and Operating Profit/Loss if an increase in the salaries expense of salespersons by R480 000 is expected to increase sales by 450 units. (3 marks) 3.3 Suppose Sindair Limited decided to set the sales price at R1 728 per unit. If sales drop to 3500 units, how much more can the compary spend on advertising and be able to generate an operating profit of R1 000000 ? (4 marks) 3.4 Should management consider a drop of R60 per unt in the selling price if the sales volume is expected to increase to 4400 units? Motivate your answer with the relevant. calculations. (4 marks) 3.5 Determine the selling price per unit that will enable the compary to achieve an operating profit of R1 602000 . (5 marks) INFORMATION Sindair Limited is analysing whether its new product will be profitable. The following data, based on expected sales of 4000 units, is provided for analwsis
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started