QUESTION $3$

$(20$ Marks$)$

REQUIRED

Study the information given below and answer the following questions independently:

$3\mathrm{.}1$ Use the marginal income ratio to caculate the break$-$even value.

$(4$ marks$)$

$3\mathrm{.}2$ Calculate the sales volume required to achieve a net profit of R$1740000.$

$(4$ marks$)$

$3\mathrm{.}3$ Calculate the total Marginal mncome and Net Piofilusoss in an ucrease in advertising expense by R$200$ co$0$ is expected to increase sales by $3000$ units:

$(4)$ marks$)$

$3\mathrm{.}4$ Calculate the margin of safety $($in units$)$ if the variable madufacuring costs increase by $10\%$ and fixed manufacturing overheads cost tncreas b : $224-50$

$(4$marks$)$

$3\mathrm{.}5$ Based on the expected sales volume of $40000$ Units determing the sal sprice per unit that will allow the company to breakleven.

$(4$ marks$)$

INFORMATION is R $150$ per unit. The relevant costs are as tollows: