REQUIRED

Use the information provided below to answer the following questions:

$2\mathrm{.}1$ Calculate the break$-$even quantity.

$2\mathrm{.}2$ Calculate the break$-$even value ysing the marginal income ratio.

$(4)$

$(3)$

$2\mathrm{.}3$ Calculate the margin of safety $($as a percentage$).$

$(3)$

$2\mathrm{.}4$ Calculate the number of units that must be sold to achieve a net profit of R$320000.$

$(4)$

$2\mathrm{.}5$ Calculate the expected net profit$/$loss in each of the following independent cases:

$2\mathrm{.}5\mathrm{.}1$ If advertising is increased by R$25000$ and the sales volume is expected to increase from $500$ units to $620$ units.

$(3)$

$2\mathrm{.}5\mathrm{.}2$ A decrease in the selling price by R$100$ and an increase in salespersons' salaries by $R50000$ is expected to increase sales by $280$ units.

$(3)$

INFORMATION

Southgate Manufacturers makes a single product and the management accountant has provided the following budget to produce $500$ units:

$\backslash$table$[[,$R$],[$Sales$,500000],[$Direct materials cost,$175000],[$Direct labour cost,$80000],[$Variable manufacturing overheads,$20000],[$Fixed manufacturing overheads,$80000],[$Fixed selling and administrative costs,$20000],[$Sales commission $(5\%$ of sales$),25000]]$

Production and sales are expected to be $500$ units.