SECTION A Answer all questions Question 1 Your organisation Empire plc produces one product that sells for 260 per unit. Each of these units has variable costs as follows: 5 hours labour @ 18.40 per hour * Royalties at 11.20 per unit 5 square metres of material per unit at 10.40 per square metre The fixed costs of Apple Limited are 120,000 You are required to calculate the following: (a) The contribution per unit towards the fixed costs of the organisation 6) Break-even point in units. The number of units that would have to be produced to earn the desired profit of 48,000 (a) The profit earned if the organisation sells 70,400 units (6 marks) @ The profit earned if the selling price is reduced to 240 and the demand rises to 75,600 units. (6 marks) (3 marks) (4 marks) (6 marks) (25 marks)