MAC$2601$

OCTOBER $2024$

$[$CONFIDENTIAL$]$ Page $6$ of $10[$TURN OVER$]$

QUESTION $1(15$ Marks$)(18$ Minutes$)$

Body Lotions $($Pty$)$ Ltd manufactures one type of body lotion.

You are provided with the following costing information for the quarter ended

$30$ September $2024,$ which is representative of a typical quarter for the business:

Total Per unit $($lotion$)$

R R

Sales $97500060$

Less: Variable costs $78000048$

Contribution $19500012$

Less: Fixed expenses $180000$

Profit $15000$

REQUIRED Marks

$($a$)$ Calculate the quarterly breakeven point in units and Rand amount. $(4)$

$($b$)$ Determine the contribution margin at breakeven point. $(2)$

$($c$)$ Calculate the number of Body lotions that are needed to be sold in

each quarter to generate the quarterly target profit of R$60000.$

$(2)$

$($d$)$ Calculate the margin of safety in Rand terms and percentage terms

for the quarter ended $30$ September $2024.$

$(4)$

$($e$)$ By what percentage must Body Lotions increase its selling price for

its profit for the quarter to increase by $100\%?$

$(2)$

$($f$)$ Define the term contribution. $(1)$

Total $[15]$

Question $2(7$ Marks$)(8$ Minutes$)$

Corporate governance in South Africa is led by the King Report on Corporate GovernanceTM.

This report tasks the governing body of an organisation with steering the direction of the

organisation. The Board of Directors $($BoD$)$ is the governing body of a company.

REQUIRED Marks

$($a$)$ List seven concepts that form the foundation stones of King IVTM. $(7)$

Total $[7$