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The information below concerns the manufacture of a component called Triple X: Budgeted sales volume in units 2 000 Variable cost per unit: Manufacturing R135

The information below concerns the manufacture of a component called Triple X:

Budgeted sales volume in units

2 000

Variable cost per unit:

Manufacturing

R135

Distribution

R125

Fixed overheads:

Manufacturing

R47 500

Distribution and administration

R22 500

Expected selling price per unit

R400

Calculate the following from the above information:

1.1 Marginal income (Contribution) ratio.

1.2 Break-even quantity.

1.3 Break-even value using units.

1.4 Break-even value using marginal income (Contribution) ratio.

1.5 Margin of safety in terms of value.

1.6 Margin of safety in terms of units.

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