QUESTION $3$

$(20$ Marks$)$

REQUIRED

Use the information provided below to calculate the following independently:

$3\mathrm{.}1$ Break even value using the marginal income ratio

$(4$ marks$)$

$3\mathrm{.}2$ Margin of safety $($in units$)$

$(4$ marks$)$

$3\mathrm{.}3$ Break$-$even quantity, if salaries increase by R$80000$

$(4$ marks$)$

$3\mathrm{.}4$ Total Marginal Income and Net Profit$/$Loss if the sales volume is $\backslash (10\backslash \%\backslash )$ less than expected

$(4$ marks$)$

$3\mathrm{.}5$ The number of units that must be sold to earn a net profit of R$120000,$ if the selling price is reduced by $\backslash (10\backslash \%\backslash )$

$(4$ marks$)$

INFORMATION

Softex Ltd manufactures blankets. The following information was extracted from the budget for the year ended $31$ December $2025$:

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline Sales & $25000$ units $\backslash \backslash$

$\backslash$hline Selling price per unit & R$200\backslash \backslash$

$\backslash$hline Direct materials cost per unit & R$50\backslash \backslash$

$\backslash$hline Direct labour cost per unit & R$40\backslash \backslash$

$\backslash$hline Variable manufacturing overheads cost per unit & R$10\backslash \backslash$

$\backslash$hline Variable marketing cost per unit & R$20\backslash \backslash$

$\backslash$hline Fixed manufacturing overheads cost per month & R$800000\backslash \backslash$

$\backslash$hline Fixed administration and marketing cost per month & R$400000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$