ROADHAWK, manufactures a variety of automobile tyres. The following information relates to proposed production of the new $$ GRIPTON $$ tyre to be launched in December $2024.$

INFORMATION

Sales forecast $8000$

Selling price per tyre R$900$

Variable Costs per unit:

Direct Material R$210$

Direct labour R$150$

Manufacturing overheads R$40$

Fixed costs:

Production R$800000$

Selling and Distribution R$170000$

Administration R$30000$

$1)$ Prepare the Marginal Income Statement for December $2024.(9$ marks$)$

$2)$ Calculate the Break$-$even Quantity. $(2$ marks$)$

$3)$ Determine the sales required to attain a target profit of R$3500000.(3$ marks$)$

$4)$ Calculate the Break$-$even Quantity if only the Fixed costs are increased by $12\%.(3$ marks$)$

$5)$ Calculate the break$-$even quantity if only the Variable costs are decreased by $10\%.(3$ marks$)$