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$3\mathrm{.}1$ REQUIRED Study the information given below and answer the following questions independently. As far as possible, use the expanded contribution margin model to present your answers. $3\mathrm{.}1\mathrm{.}1$ Calculate the break$-$even quantity. $(5$ marks$)3\mathrm{.}1\mathrm{.}2$ Calculate the sales volume required to achieve an operating profit of R$2484000.(4$ marks$)3\mathrm{.}1\mathrm{.}3$ Suppose the management team of Timera Enterprises is considering a decrease of R$18$ per unit in the selling price of the product, with the expectation that this would increase the sales volume by $\backslash (12\backslash \%\backslash ).$ Is this a good idea? Motivate your answer with the relevant calculations. $(5$ marks$)3\mathrm{.}1\mathrm{.}4$ Determine the selling price per unit $($expressed to the nearest cent$)$ that will enable Timera Enterprises to break even. $(5$ marks$)$ INFORMATION$\backslash (3\mathrm{.}2\backslash )$ REQUIRED Use the information provided below to estimate the monthly sales revenue at which Sebcom Limited would break even. INFORMATION The expected operatina results of Sebcom Limited for two months are summarised as follows:QUESTION $3$

$3\mathrm{.}1$

REQUIRED

Study the information provided below and answer the following questions:

$3\mathrm{.}1\mathrm{.}1$ If the sales manager's proposal is rejected, calculate the total revenues at break$-$even by using the

contribution margin ratio.

$(4$ marks$)$

$3\mathrm{.}1\mathrm{.}2$ Calculate the additional expenditure that the company can afford to spend on advertising, in keeping with

the sales manager's proposal. $(4$ marks$)$

$3\mathrm{.}1\mathrm{.}3$ Calculate the break$-$even quantity if the sales manager's proposal is accepted $($using the proposed new

selling price and the increase in the advertising outlay$).(4$ marks$)$

INFORMATION

Denel Enterprises manufactures a product that sells for R$180$ each. The company presently produces and sells

$120000$ units per year. Unit variable manufacturing expenses and variable selling expenses are R$90$ and $10\%$

of the sales price respectively. Fixed costs are R$4536000$ for manufacturing overheads and R$1944000$ for

selling and administrative activities. The sales manager has proposed that the price be increased to R$216$ per

unit. To maintain the present sales volume, advertising must be increased. The company's profit objective is

$10\%$ of sales.

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