WTL Ltd produces a stylish yet affordable handbag that sells for R30 per unit. Variable costs to manufacture and sell are R16 per unit. Fixed costs and expenses are budgeted at a total of R 54 600 per year.

Required:

3.1 Discuss the concept contribution margin. (4)

3.2 Calculate the break-even value in Rands. (4)

3.3 Calculate the net income to be expected on sales of R240 000. (4)

3.4 Calculate the sales revenue required to produce net