QUESTION $3$

$(20$ MARKS$)$

REQUIRED

Study the information given below and calculate the following independently.

Note: The expanded contribution margin model MUST be used to answer questions $3\mathrm{.}1,3\mathrm{.}2$ and $3\mathrm{.}4.$

$3\mathrm{.}1$ Break$-$even quantity

$(4$ marks$)$

$3\mathrm{.}2$ Total Contribution Margin and Operating Profit$/$Loss$,$ if the variable manufacturing costs are $10\%$ higher than forecasted

$(4$ marks$)$

$3\mathrm{.}3$ The margin of safety $($expressed as a percentage to two decimal places$)$ using the breakeven value

$(4$ marks$)$

$3\mathrm{.}4$ The sales volume required to earn an operating profit of $R715000,$ if the sales price is reduced by R$10$ per unit

$(4$ marks$)$

$3\mathrm{.}5$ The selling price per unit $($expressed in rands and cents$)$ that will enable Zampa Manufacturers to break even.

$(4$ marks$)$

INFORMATION

Zampa Manufacturers manufactures and sells one product and the following forecasts apply to $30000$ units of the product that are expected to be manufactured and sold during $2025$:

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