Question: 3.1 REQUIRED Study the information provided below and answer the following questions: 3.1.1 If the sales managers proposal is rejected, calculate the total revenues at
3.1 REQUIRED Study the information provided below and answer the following questions: 3.1.1 If the sales managers proposal is rejected, calculate the total revenues at break-even by using the contribution margin ratio. (4 marks) 3.1.2 Calculate the additional expenditure that the company can afford to spend on advertising, in keeping with the sales managers proposal. (4 marks) 3.1.3 Calculate the break-even quantity if the sales managers proposal is accepted (using the proposed new selling price and the increase in the advertising outlay). (4 marks) INFORMATION Denel Enterprises manufactures a product that sells for R180 each. The company presently produces and sells 120 000 units per year. Unit variable manufacturing expenses and va
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