QUESTION THREE $[19$ marks$]$

INFORMATION

Pembury Limited produces only one product. Sales and production are expected to be $9000$ units per year. The unit sales price is R$190.$

The costs of the product is as follows:

$\backslash$table$[[,$Variable costs per unit,Total fixed costs$],[$Direct Materials,R$30,],[$Direct labour,R$50,],[$Manufacturing overheads,R$10,],[$Marketing expenses,,R$180000],[$Administrative expenses,,R$220000]]$

REQUIRED

Calculate the following:

$3\mathrm{.}1$ Breakeven quantity $(3$ marks$)$

$3\mathrm{.}2$ Breakeven value $(3$ marks$)$

$3\mathrm{.}3$ Target sales volume to achieve a profit of R$100000(4$ marks$)$

$3\mathrm{.}4$ Breakeven quantity if selling price is increased by $10\%$ and all costs remain unchanged. $(3$ marks$)$

$3\mathrm{.}5$ Breakeven quantity if fixed costs are increased by $10\%$ and all other revenue and costs remain unchanged $(3$ marks$)$

$3\mathrm{.}6$ Based on the original costs and selling price, what is the margin of safety in units $(3$ marks$)$