QUESTION 3 (20 MARKS) 3.1 REQUIRED Study the information given below and answer the following questions independently. Note: The expanded contribution margin model MUST be used to answer the four questions. 3.1.1 Calculate the break-even quantity. 3.1.2 Calculate the sales volume required to achieve an operating profit of R2 484 000. 3.1.3 Suppose Hampshire Limited is considering a decrease in the selling price of R18 per unit, with the expectation that this would increase the sales volume by 10%. By how much will the contribution margin change? 3.1.4 Calculate the variable cost per unit that will enable the company to break even. INFORMATION (4 marks) (4 marks) (4 marks) (4 marks) Hampshire Limited produces a single product. The following budgeted information for 2026 is available: Production and sales 50 000 units Selling price per unit R492 Variable manufacturing costs per unit R170.48 Fixed manufacturing costs Marketing costs R9 104 000 R1 296 000 plus 6% of sales Administration costs R640 000 plus R16 per unit sold 3.2 REQUIRED Use the information provided below to calculate the monthly sales revenue at which Regal Limited would break even. INFORMATION The results of Regal Limited for April and May 2025 are summarised as follows: April (R) (4 marks) Sales May (R) 4 800 000 Fixed costs 5 600 000 560 000 Operating profit 560 000 1 600 000 1 960 000