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Slumber Limited manufactures beds. The following information was extracted from the budget for 2024: Expected production and sales (units) Selling price per bed Direct
Slumber Limited manufactures beds. The following information was extracted from the budget for 2024: Expected production and sales (units) Selling price per bed Direct materials cost per bed Direct labour cost per bed Variable manufacturing overheads cost per bed Fixed manufacturing overheads cost Sales commission (as a percentage of the selling price) Fixed administrative and selling costs 1 200 R6 000 R1 700 R860 R320 R1 084 800 20% R720 000 REQUIRED Use the information given below to calculate each of the following independently: Expected total Marginal Income and Net Profit/Loss 3.1 (4 marks) 3.2 Margin of safety (as a percentage; expressed to two decimal places) (4 marks) 3.3 Break-even quantity if the selling price drops by 10% (4 marks) 3.4 Break-even value using the marginal income ratio, if the company spends an additional R435 200 on salaries (4 marks) 3.5 Selling price per unit that will enable the company to achieve a net profit of R1 500 000 (4 marks)
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