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QUESTION 3 (25 marks) Puma Ltd produces and sells bins to recycling companies. The company...

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QUESTION 3 (25 marks) Puma Ltd produces and sells bins to recycling companies. The company has the capacity to produce 22,000 units but annual production and demand is currently limited by the market to 20,000 bins per annum. 3a) Calculate the break-even point, state your answer in units. (4 marks) 3b) Calculate the margin of safety, state your answer in units (2 marks) 3c) If Puma Ltd were to require a profit of 30,000 how many units would it need to sell? (4 marks) 3d) If Puma Ltd were to increase the selling price by 10% and fixed overheads were to fall by 10%, what would the breakeven point be? State your answer in units. (4 marks) An order is received from The Waste Company Ltd for 2,000 bins at a price of 35 each. 3e) Discuss in detail whether the order from The Waste Company Ltd should be accepted. Justify/ give reasons for the basis of your answer which should be numeric only. (5 marks) 3f) Explain in detail TWO non-financial (qualitative) factors which should be considered before accepting the order. ( 6 marks)

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