Honda Fit Ltd purchased a new piece of machinery to expand the production output of its top-of-the-line car model. The marginal income ratio is 64% and the company has R3 200 000 as fixed costs. After the machine was purchased, the company achieved a sales revenue of R5 600 000. 

Determine the company's margin of safety in percentage terms and comment.

 

REQUIRED

Determine the External Funding Needed by Preparing a Pro Forma Statement of Financial Position as at 31 December 2021 from the information given below. INFORMATION The financial position of Tshidiso Limited as at 31 December 2020.

Answer rating: 100% (QA)

Marginal income ratio 64 Fixed costs R3200000 Actual sales revenue R5600000 First w... View the full answer