Waikona Ltd manufactures and sells a single product. The selling price is R$18.$ The following information relates to its yearly production and cost data. $($Assume that there is no change to the stock level of the company.$)$

Unit Total Year Volume Cost R

$13000004000000$

$21500002800000$

$34200006600000$

$42800003900000$

$52300003200000$

$61200002100000$

Required:

$1.$ Based on the above cost and volume data, use the high-low method to identify the variable cost per unit and annual fixed costs for the company.

  

$2.$ On the basis of your answers in part $(1)$ above, calculate the breakeven point of the company in both units and sales revenue.

  

$3.$ The company expects to manufacture and sell $150000$ units this year. Calculate the margin of safety in percentage terms and the operating leverage at the expected sales level.

  

$4.$ The manager of the company has an annual fixed salary of R$80000$ and a yearly variable bonus which is equal to $2\%$ of the operating profit. The maximum bonus is $50\%$ of the annual salary. What would be the minimum desired level of sales revenue from the managers point of view if he wishes to maximize his income?