QUESTION $3$

$(25$ Marks$)$

REQUIRED

Use the information provided by Umdloti Manufacturers to answer the following questions independently. The expanded contribution margin model must be used to answer questions $3\mathrm{.}2$ and $3\mathrm{.}3.$

$3\mathrm{.}1$ Calculate the margin of safety $($as a percentage expressed to two decimal places$).$

$(5$ marks$)$

$3\mathrm{.}2$ Calculate the number of units that must be sold if an operating profit of R$6750000$ is desired.

$(5$ marks$)$