SECTION A [100 MARKS] Answer ALL the questions in this section. QUESTION ONE 1.1 INFORMATION A company manufactures a single product and the following budget has been produced by the management accountant: Sales @ R250 each R250 000 Variable costs R150 per unit Fixed costs R50 000 Production and sales are expected to be 1 000 units. 1.1 1.1.1 Calculate the break-even quantity. (5 marks) 1.1.2 Calculate the break-even value. (5 marks) 1.1.3 Calculate the margin of safety (in terms of value). (5 marks) 1.2 INFORMATION Yoko Limited expects to incur the following costs to produce and sell 35 000 units of its product at R14.50 each: Variable manufacturing cost R105 000 Fixed manufacturing cost R40 000 Variable marketing expense R52 500 Fixed marketing and administrative expenses R30 000 1.2 1.2.1 Calculate the marginal income per unit (5 marks) If Yoko Limited decides on a selling price of R16 and has profit objective of R79 500, calculate the target sales volume. 1.2.2 (5 marks)