QUESTION $4$

$(20$ MARKS$)$

Halmart manufactures two products $-$ Product A and Product $B.$ The following details relate to the two products.

$\backslash$table$[[,$Product A$,$Product B$],[$Direct materials cost per unit,R$20,$R$30],[$Direct labour cost per unit,R$28,$R$20],[$Variable overhead cost per unit,R$20,$R$18],[$Total fixed cost,R$30000,$R$28000],[$Selling price per unit,R$82,$R$80],[$Number of units sold,$6000,5000]]$

Required

Calculate the marginal income ratio for Product A and Product $B$

$(4$ marks$)$

Calculate the break$-$even quantity and break$-$even value for Product A and Product $B$

$(6$ marks$)$

Calculate the margin of safety in terms of units and value for Product A and Product $B$

$(6$ marks$)$

Discuss the importance of Cost Volume Profit $($CVP$)$ Analysis

$(4$ marks$)$