QUESTION $4$

$(20$ Marks$)$

REQUIRED

Use the information provided below to calculate the following independently:

$4\mathrm{.}1$ Break$-$even value, using the marginal income ratio

$(4$ marks$)$

$4\mathrm{.}2$ Margin of safety $($as a percentage, expressed to two decimal places$),$ using the break$-$even quantity

$(4$ marks$)$

$4\mathrm{.}3$ The sales volume required to achieve a net profit of $R1200000$

$(4$ marks$)$

$4\mathrm{.}4$ The total Marginal Income and Net Profit$/$Loss if the sales volume is $10\%$ less than expected

$(4$ marks$)$

$4\mathrm{.}5$ Break$-$even quantity if the selling price drops by R$20$ per unit and the total fixed costs are R$992200.$

$(4$ marks$)$

INFORMATION

Forecasted costs for the only product to be manufactured by Vierra Enterprises for $2025$ are as follows:

$\backslash$table$[[,$R$],[$Fixed manufacturing overheads,$600000],[$Variable manufacturing overheads,$800000],[$Direct materials,$2400000],[$Direct labour,$1000000],[$Fixed selling and administrative costs,$400000],[$Sales commission,$10\%$ of the sales price$]]$

Expected production and sales for $2025$ are $12000$ units with a selling price of R$500$ per unit.N