REQUIRED

Study the information given below and answer the following questions independently:

$3\mathrm{.}2\mathrm{.}1$ If Dundee Limited wants to achieve an operating profit of R$972000,$ calculate the target sales value without

using the contribution margin ratio. $(4$ marks$)$

$3\mathrm{.}2\mathrm{.}2$ Based on the expected sales volume, what sales price per unit will allow the company to break

even? $(4$ marks$)$

INFORMATION

Dundee Limited is analysing whether its new product will be profitable. The following data is based on expected

sales of $40000$ units:

Variable manufacturing costs R$3840000$

Fixed manufacturing costs R$1200000$

Fixed marketing and administrative costs R$420000$

The expected selling price is R$150$ per unit.