Use the information provided below to calculate the following independently:

$3\mathrm{.}1$ Break$-$even quantity

$3\mathrm{.}2$ Margin of safety $($in Rands$)$

$3\mathrm{.}3$ The selling price per unit that will enable the company to break even

Information

The following budgeted information was extracted from the budget of Brad Manufacturers:

Sales $30000$ units

Selling price per unit R$220$

Direct materials cost per unit R$30$

Direct labour cost per unit R$20$

Variable manufacturing overheads cost per unit R$10$

Fixed manufacturing costs R$1800000$

Variable cost per unit R$40$

Fixed marketing and administration costs R$600000$

Answer rating: 100% (QA)

To calculate the breakeven quantity we need to use the following formula Breakeven quantity Fixed co... View the full answer