4.1 Suppose Smarty Limited wants to make provisions for 10% increase in fixed cost and an increase in variable cost by R 0.20 per unit. Taking these increases into account calculate the following:

4.1.1 Safety Margin as a percentage

4.1.2 The number of units that need to be sold to earn a net profit of R 850 000.
 

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Smarty Limited manufactures and sells only one product. The budgeted details for 2022 are as follows. Number of units sold per month Selling price per unit Variable cost per unit Total fixed costs. 185 000 R5,00 R3,60 R2 350 000,00 Smarty Limited manufactures and sells only one product. The budgeted details for 2022 are as follows. Number of units sold per month Selling price per unit Variable cost per unit Total fixed costs. 185 000 R5,00 R3,60 R2 350 000,00

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411 Safety Margin as a percentage To calculate the safety margin we first need to calculate the cont... View the full answer