Answer ALL questions.

QUESTION $1$

Information

$(25$ Marks$)$

ABC Company is a manufacturer of widgets. The company has provided the following financial information for the year $2023$:

$\backslash$table$[[$Selling Price per Widget,R$10],[$Direct Materials per Widget,R$1\mathrm{.}50],[$Direct Labour per Widget,R$1\mathrm{.}80],[$Variable overheads per Widget,R$0\mathrm{.}70],[$Fixed cost$,$R$20000],[$Expected sales for $2023,10000$ widgets$]]$

Required:

Calculate the following breakeven and profit$-$related metrics, providing both the formula and the calculation:

$1\mathrm{.}1$ Breakeven Quantity $($in units$).$

$(4$ Marks$)$

$1\mathrm{.}2$ Breakeven Value $($in rands$).$

$(4$ Marks$)$

$1\mathrm{.}3$ Margin of Safety $($in rands and percentage$).$

$(8$ Marks$)$

$1\mathrm{.}4$ Number of Sales Units Required to Achieve a Profit of R$15,000.$

$(5$ Marks$)$

$1\mathrm{.}5$ Calculate the new breakeven quantity if the selling price increases to R$12$ while other factors remain the

$(4$ Marks$)$

same.