Question: PROGRAMME HANDBOOK: JANUARY 2020 INTAKE QUESTION 4 Sales Variable cost per unit sold Total fixed cost Sales volume the Statement of Changes in Equity for

PROGRAMME HANDBOOK: JANUARY 2020 INTAKE QUESTION 4 Sales Variable cost per unit sold Total fixed cost Sales volume the Statement of Changes in Equity for the year ended 30 June 2020 The following budgeted details for 2020 relate to a product manufactured by kito Limited: Suppose sales increase by R10 000 without changes to any costs. By what amount will contribution R50 000 R7.50 R12 500 2 500 units (3) Consider the following situations independently: 4.1 Calculate the operating profit. 4.2 (2) margin and operating profit increase? 4.3 Suppose fixed costs increase by R3 000. By how much must sales increase if operating profit was to (2) remain unchanged? 4.4 Would you recommend an advertising programme costing R5 000 that would generate an additional R10 (2) (3) 000 of sales? Why? Calculate the volume of sales required to achieve an operating profit of R20 000. 4.5 60

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