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REQUIRED Study the information given below and answer each of the following questions INDEPENDENTLY: 3.1 Calculate the margin of safety (in units). (4 marks) 3.2
REQUIRED Study the information given below and answer each of 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/Loss, if the direct materials are expected to cost R30 per unit more and fixed manufacturing overhead costs are 10% greater than projected. (4 marks) 3.3 Calculate the variable cost per unit to break even, if the fixed costs and selling price per unit remain the same but the break-even quantity changes to 6000 units. (4 marks) 3.4 Use the contribution margin ratio to determine the level of sales in Rands required to obtain an operating profit of R1950000. (4 marks) 3.5 Alpha Limited wants to eliminate the variable selling expenses by employing a salaried sales force. If the company sells 14250 units, how much could it pay in salaries to the sales staff and still have a profit of R16800000 ? (4 marks) INFORMATION Alpha Limited manufactures and sells its own brand of guitars. Each guitar sells for R3000 and the company expects to sell 12000 guitars during 2023 . The financial manager has provided the following projected data for 2023: REQUIRED Study the information given below and answer each of 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/Loss, if the direct materials are expected to cost R30 per unit more and fixed manufacturing overhead costs are 10% greater than projected. (4 marks) 3.3 Calculate the variable cost per unit to break even, if the fixed costs and selling price per unit remain the same but the break-even quantity changes to 6000 units. (4 marks) 3.4 Use the contribution margin ratio to determine the level of sales in Rands required to obtain an operating profit of R1950000. (4 marks) 3.5 Alpha Limited wants to eliminate the variable selling expenses by employing a salaried sales force. If the company sells 14250 units, how much could it pay in salaries to the sales staff and still have a profit of R16800000 ? (4 marks) INFORMATION Alpha Limited manufactures and sells its own brand of guitars. Each guitar sells for R3000 and the company expects to sell 12000 guitars during 2023 . The financial manager has provided the following projected data for 2023
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