REQUIRED
Refer to the information given below and answer eachof the following questions independently:
3.1	Calculate the margin of safety (in units).	(4 marks)
3.2	Calculate the total Contribution Margin and Operating Profit/Lossif an increase in the salaries expense of salespersonsby R480 000 is expected to increase sales by 450 units.	(3 marks)
3.3	Suppose Sinclair Limited decided to set the sales price at R1 728 per unit. If sales drop to 3 500 units,how much more can the company spend on advertising and be able to generate an operatingprofit of R1000 000?	(4 marks)
3.4	Should management consider a drop of R60 per unit in the selling price if the sales volume is expected to increase to 4 400 units? Motivateyour answer with the relevant calculations.	(4 marks)
3.5	Determine the selling price per unit that will enable the company to achieve an operating profit of R1 602 000.	(5 marks)

INFORMATION
Sinclair Limited is analysing whether its new product will be profitable. The following data, based on expected sales of 4 000 units,is provided for analysis:
Selling price perunit	R1 620
Direct materials cost per unit	R350
Direct labourcost per unit	R250
Variable overheads cost per unit	R102
Fixed manufacturing overheads cost	R1 000 000
Sales commission (as a percentage of the selling price)	10%
Fixed administrative and selling costs	R738 800