INFORMATION Radasys Enterprises is a manufacturer of patio tables. The following information was extracted from...
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INFORMATION Radasys Enterprises is a manufacturer of patio tables. The following information was extracted from the budget for the year ended December : Required: Calculate the total contribution margin and the profit for the year. Using the contribution margin ratio calculate the breakeven value. Calculate the margin of safety in terms of units Calculate the number of units that need to be sold in order to achieve an operating profit of R Determine the additional amount that the manufacturer can spend on salaries and still realise an operating profit of R Suppose Radasys Enterprises wants to implement a drop in the selling price per unit accompanied by Marks a R increase in advertising expense with the expectation that sales volume will increase by units. Will profitability improve? Motivate your answer with the relevant calculations. 
INFORMATION
Radasys Enterprises is a manufacturer of patio tables. The following information was extracted from the budget for the
year ended December :
Required:
Calculate the total contribution margin and the profit for the year.
Using the contribution margin ratio calculate the breakeven value.
Calculate the margin of safety in terms of units
Calculate the number of units that need to be sold in order to achieve an operating profit of R
Determine the additional amount that the manufacturer can spend on salaries and still realise an
operating profit of R
Suppose Radasys Enterprises wants to implement a drop in the selling price per unit accompanied by Marks
a R increase in advertising expense with the expectation that sales volume will increase by
units. Will profitability improve? Motivate your answer with the relevant calculations.
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