?Question $3$

The following scenario is relevant to Questions $3\mathrm{.}1-3\mathrm{.}3.$

Countrymen Ltd produces and sells two different products in $1kg$ ?bags, apples and pears. The

following information regarding the products are available:

During the most recent month, the company sold $500$ ?bags of apples and $350$ ?bags of pears. Fixed

expenses are R$8000$ ?per month.

Required:

Q$\mathrm{.}3\mathrm{.}1$ ?Complete the following statement of profit or loss and other comprehensive income

for the most recent month.

Q$\mathrm{.}3\mathrm{.}2$ ?Calculate Countrymen Ltd$\text{'}$s overall monthly break$-$even point in units and Rand

value.

Show formulas and workings.

Q$\mathrm{.}3\mathrm{.}3$ ?Explain what is likely to happen when a company has low fixed costs and high

variable costs.