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Sonny Ltd is an upcoming backyard salon situated in Gauteng, South Africa. They have been operating very well ever since they started, the only problem

Sonny Ltd is an upcoming backyard salon situated in Gauteng, South Africa. They have been operating very well ever since they started, the only problem they have is to account for each and every cost they have incurred so that they can be able to establish whether they are breaking even or not. You have been approached by the owner of the company to assist them on cost accounting issues since you have done the Cost Accounting module. The following extract from Sonny Ltd for the month of August 2023 has been availed to you:
The total cost per unit was P336.00 which includes the following:
i. Direct materials and direct labour price per unit were P88.00 and P144.00 respectively.
ii. The company overheads per unit which included variable and fixed overheads were P56.00 and P48.00 respectively.
Additional information:
The selling price per unit was P480.00, the Fixed overhead was P96000.00 and the net profit amounted to P72 per unit. Sonny Ltd total budgeted sales for the coming month is 8800 units.
Required: Calculate the following:
(i) Sales breakeven point, in units for the month (3 marks)
(ii) Margin of safety for the coming month (3 marks)
(iii) Next month budgeted profit (2 marks)
(iv) Sales required to achieve a profit of P192000.00 in a month

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