SECTION A REQUIRED: Answer the following questions by selecting the correct answer This information should be used for question 1.1 - 1.2. Fully charged Limited produces solar power bank chargers. The regular selling price is R400 per unit. The variable cost of goods sold amounts to R 290 and normal monthly production is 2 000 chargers. Average fixed manufacturing cost is R120 000 per month. Selling and administrative costs are fixed and amount to R30 000 per month. 1.1 Due to the load shedding problem which South Africa is facing the company expects to sell more power banks this month. How many units do they need to sell to break even and achieve a profit of R30 000? Fixed cost + Profit A. 1111 units BEP = B. 1398 units C. 1112 units 100 0co + 30 000 (2) D. 1389 units 400 - 290 1.2 Full charged Limited's marketing team has established that the demand for the power bank chargers is likely to increase in the following month. Assume the selling price has increased by 10% and the contribution margin ratio is 40%. What is the variable cost per power bank? Sa1 100 400 x 110% = 440 R440 VC (60 ) A. CM B. R176 40 % C. R264 D. R290 (1) 1.3 Identify which one of the following statements regarding variable cost is correct? Variable costs vary on per unit basis but remain the same in total as level of activity changes. B. Variable costs vary on per unit basis as level of activity changes. C. D. Variable costs vary in total, in direct proportion to changes in the level of activity. Variable costs remain the same in total as the level of activity changes. (1)