REQUIRED

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

$3\mathrm{.}1$ Use the contribution margin ratio to calculate the sales value required to break even.

$(4$ marks$)$

$3\mathrm{.}2$ Calculate the margin of safety in units.

$(4$ marks$)$

$3\mathrm{.}3$ If the ingredients cost $10\%$ more than budgeted, calculate the total contribution margin and total operating profit$/$loss$.$

$(4$ marks$)$

$3\mathrm{.}4$ Suppose Chocolos Limited decides to add pecans to the ingredients at a cost of R$2\mathrm{.}40$ per unit. It could then enable the company to charge R$104$ per box. If the sales volume decreases by $5\%,$ determine the change in the contribution margin.

$(4$ marks$)$

$3\mathrm{.}5$ Calculate the number of units that must be sold to earn an operating profit of $R198512$ if the fixed manufacturing overhead costs increase by $10\%$ and direct labour costs decrease by $10\%.$

$(4$ marks$)$

INFORMATION

Chocolos Limited produces chocolates. Each box of chocolates sells for R$96.$ The budgeted costs to produce $35000$ boxes of chocolates for $2024$ are as follows:

$\backslash$table$[[$Production costs:,R$],[$Sugar$,98000],[$Other ingredients,$714000],[$Direct labour,$252000],[$Boxes$,212800],[$Fixed manufacturing overhead costs,$100000],[$Selling and administrative costs:,$],[$Sales commission $(2\%$ of sales$),67200],[$Salaries$,192000],[$Other fixed costs,$59360]]$