The following information relates to a manufacturer of bricks :

R R R

Sales $(40000$ units at R$10)400000$

Less: Cost of sales Fixed Variable $280000$

Cost of direct materials $60000$

Cost of direct labour $80000$

Manufacturing overheads $10000040000\_\_\_\_\_\_\_\_\_\_\_\_\_$

Gross profit $120000$

Less: Selling and admin costs $300002000050000$

Net Profit $70000$

Required:

Determine the following:

a$.$ The breakeven point $($in units and value$)$

b$.$ The effect on the breakeven units if there is an

i$.$ Increase of $10\%$ in the selling price per unit

ii$.$ Increase of $10\%$ in the sales volume

iii. Increase of $10\%$ in the variable costs per unit

iv$.$ Increase of $10\%$ in f ixed cost

Consider each scenario independently