Question 3 Study the information given below and answer each of the following questions independently: 3.1 Calculate the
Posted: Tue Jul 05, 2022 11:25 am
Question 3Study the information given below and answer each of the following questions independently:3.1 Calculate the total Marginal Income and Net Profit/Loss if all the tables are sold. (4 marks)3.2 Use the marginal income ratio to calculate the break-even value. (4 marks)Calculate the new total Marginal Income and Net Profit/Loss, if an increase in advertising expenseby R100 000 is expected to increase sales by 400 units.3.3 (4 marks)3.4 How many units must be sold if the company wishes to earn a net profit of R298 920. (4 marks)Based on the expected sales volume of 2 400 units, determine the sales price per unit (expressedin rands and cents) that will enable the company to break even.(4 marks)INFORMATIONSamcor Limited manufactures tables. The following information was extracted from the budget for the year ended 30June 2022:1. Total production and sales 2 400 units2. Selling price per table R1 2003. Variable manufacturing costs per table:Direct material R288Direct labour R192Overheads R964. Fixed manufacturing overheads R216 9605. Other costs:Fixed marketing and administrative costs R144 000Sales commission 5%