$3\mathrm{.}1$

REQUIRED

Study the information provided below and answer the following questions independently:

$3\mathrm{.}1\mathrm{.}1$ If sales are $10000$ units above break$-$even, calculate the total Contribution Margin and

Operating Profit$/$Loss$.(4$ marks$)$

$3\mathrm{.}1\mathrm{.}2$ Suppose Autokey Ltd experiences a $20\%$ increase in sales volume following a $10\%$

decrease in the selling price per unit. By how many percent $(\%)$ would operating profit

increase$/$decrease by$?(4$ marks$)$

$3\mathrm{.}1\mathrm{.}3$ If Autokey Ltd desires an operating profit of R$1440000,$ calculate the sales value that

would be required to achieve this by using the contribution margin ratio. $(4$ marks$)$

INFORMATION

Autokey Ltd produces a single product. The projected figures for the year $2024$ are as follows:

Sales $(25000$ units @ R$180$ each$)$ R$4500000$

Variable costs R$2700000$

Fixed costs R$157500$