3.2 REQUIRED Use the information provided below to answer the following questions:

3.2.1 Calculate the total marginal income and profit/loss. (4)

3.2.2 If Matidor Limited decides on a selling price of R28 and has profit objective of R150 000, calculate the target sales volume.

(5) INFORMATION

Matidor Limited expects to incur the following costs to produce and sell 35 000 units of its product at R29 each:

Variable manufacturing cost R210 000

Fixed manufacturing cost R80 000

Variable marketing cost R105 000 Fixed marketing and administrative cost R60 000