s Question 3 20 mans Moon (Ltd) manufacture specially treated garden benches. The following information was estrac the budget for the year ended 29 February 2016: 2 000 units Selling price per garden bench Variable production cost per garden bench - Direct material R450 R135 R90 R45 R127 500 Direct labour . Overheads Selling and administrative expenses: Salary of sales manager for the year Sales commission R75 000 10% of sales Required: (round off answers to the nearest rand or whole number) 3.1 Calculate the break-even quantity. 3.2 Determine the break-even value using the marginal income ratio. 3.3 Calculate the margin of safety (in Rand terms). 4 marks) (4 marka) (4 marka) (3 marka) 4 Determine the number of sales units required to make a profit of R150 000 35 Suppose Moon (Ltd) wants to make provision for a 10% increase in fixed production costs and an increase in variable overhead costs of R15 per unit. Calculate the new break-even quantity (5 marks) END OF PAPER Question 2 The information provided below relates to Prague Enterpss 1. The bank balance on 31 May 2018 was R9 000 unfavourable 2Actual and budgeted sales are as follows MONTH R440 000 R400 000 R480 000 May 2018 2018 Cash sales are estimated at 10% of total sales. Debtors are expected to settle their accounts as folows s receive a 5% dacourt) 30% during the month of sale (These debtors 3. Actual and budgeted purchases for each month are as follows AMOUNT R240 000 R200 000 R220 000 MONTH May 2016 June 2016 July 2016 Fifty percent(50%)of all purchases are for cash. Creditors are paid in full inthe morebioru the purchase transaction. 4. Rent expense amounts to R19 000 per month, payable monthly Rent will Increase by 10% tom 01 July 2016 5. Variable selling andadministrative expenses are estimated at 25% of sales. They are payatm during the month of sale. Insurance amounts to R72 000 per annum payable monthly. Required 21 Prepare a Debtors collection schedule for June and July 2018. 22 Prepare the Cash Budget for June and July 2018. (6 man (14 ma