REQUIRED

Use the information provided below to calculate the following independently:

$2\mathrm{.}1$ Total Marginal Income and Net Profit$/$Loss $(4$ marks$)$

$2\mathrm{.}2$ Break$-$even value $(4$ marks$)$

$2\mathrm{.}3$ Selling price per unit that will enable the project to break even $(4$ marks$)$

$2\mathrm{.}4$ Total Marginal Income and Net Profit$/$Loss if the variable manufacturing costs increase

by $5\%(4$ marks$)$

$2\mathrm{.}5$ Break$-$even quantity if the selling price drops by $10\%.(4$ marks$)$

INFORMATION

Caprice Limited plans to start Project Midas and the following are the forecasts for $2024$:

Sales $50000$ units at R$60$ per unit

Direct materials cost per unit R$16$

Direct labour cost per unit R$14$

Variable selling costs per unit $10\%$ of the sales price

Manufacturing overhead costs $($all fixed$)$ R$400000$

Fixed selling and administrative costs R$560000$