the following is last month's contribution format income statement :

6.2 GROUP ASSIGNMENT TOTAL (50) QUESTION 1 (Multiple choice) (30) The following is last month's contribution format income statement: Sales (15 000 units) R1 500 000 Break even Point Less: Variable expenses 900 000 Contribution margin 600 000 Less: Fixed expenses 500 000 Net operating income R 100 000 1. What is the company's margin of safety in rand? A R 100 000 B. R 600 000 C. D. R1 500 000 R 250 000 (3) Doubleday Corporation produces and sells a single product. The company has provided its contribution format income statement for August. (Use data for questions 2 and 3) Sales (3 200 units) R297 600 Less: Variable expenses 182 400 Contribution margin 115 200 Less: Fixed expenses 93 000 Net operating income R22 200 2. If the company sells 3 000 units, its total contribution margin should be closest to: A. R 20 813 B. R115 200 C. R 96 600 D. R108 000 (3) 3. If the company sells 3 500 units, its net operating income should be closest to: R33 000 B. R24 281 C. R22 200 D. R50 100 (3)