Answer Happy

Question 3
Study the information given below and answer each of thefollowing questions independently:
3.1 Calculate the total Marginal Income and Net Profit/Loss ifall the tables are sold. (4 marks)
3.2 Use the marginal income ratio to calculate the break-evenvalue. (4 marks)
3.3 Calculate the new total Marginal Income and Net Profit/Loss,if an increase in advertising expense
by R100 000 is expected to increase sales by 400 units.(4marks)
3.4 How many units must be sold if the company wishes to earn anet profit of R298 920. (4 marks)
3.5 Based on the expected sales volume of 2 400 units, determinethe sales price per unit (expressed
in rands and cents) that will enable the company to break even.(4 marks)
INFORMATION
Samcor Limited manufactures tables. The following informationwas extracted from the budget for the year ended 30
June 2022:
1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units R1 200 R288 R192 R96 R216 960 R144 000 5%