REQUIRED

Use the information provided below to answer the following questions independently:

$3\mathrm{.}2\mathrm{.}1$ If Kempster Limited decides on a profit objective of R$400000,$ calculate the target sales

volume.

$3\mathrm{.}2\mathrm{.}2$ Calculate the total Marginal Income and Profit$/$Loss if the company decides to reduce

the selling price to R$28$ per unit.

INFORMATION

Kempster Limited expects to incur the following costs to produce and sell $20000$ units of its product at R$30$

each:

Variable manufacturing cost R$14$ per unit

Fixed manufacturing cost R$100000$

Variable marketing cost $20\%$ of sales

Fixed marketing and administrative cost R$40000$