Question
Use the information given below to answer the following questions independently:2.1 Calculate the total Marginal Income and Net Profit/Loss if all 30 000 units are
Use the information given below to answer the following questions independently:2.1 Calculate the total Marginal Income and Net Profit/Loss if all 30 000 units are sold. (4 marks)2.2 Calculate the number of units that must be sold in order to break even. (4 marks)2.3 Calculate the number of units that are required to break even, if the selling price is reduced by 10%. (4 marks)2.4 Will a decrease of R25 per unit in the variable manufacturing costs together with an increase of R350 000 in the total fixed costs increase the net profit? Show the relevant calculations. (4 marks)2.5 Calculate the selling price per unit that will enable the project to break even, if no sales commission is payable. (4 marks)
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