The budgeted income statement for Gadgets (Pty) Ltd is as follows:

	Total ZAR
Sales (note 1)	30 000
Less: Cost of sales (note 2)	12 000
Gross Profit	18 000
Less: Operating costs (note 3)	11 500
Net profit before tax	6 500

Additional information (Notes):

1. The budgeted selling price per unit is R200.
2. The cost of sales represents variable costs associated with the purchase of the units sold from an overseas supplier.
3. The operating costs represents both a fixed and variable component. The variable component relates to commission earned at a rate of R10 per unit sold while the balance relates to total fixed costs.

Using the budgeted income statement and additional information provided, you have been requested to provide the following:

Required:

1. The companys breakeven quantity and revenue. (5 Marks)

2. The quantity if the company would like to deliver a net profit before tax of R12 500 assuming the budgeted cost structure remains the same. (3 Marks)

3. The companys breakeven quantity if the variable cost of sales per unit increases by R15. (3 Marks)

4. The companys revenue if the variable operating cost per unit decreases by R8 and the company would like to deliver a net profit before tax of R15 000. (3 Marks)

5. The companys profit if the cost of sales per unit decreases by R2, the selling price per unit increases to R210 / unit and the company sells 135 units. (3 Marks)