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QUESTION 3(20 Marks) REQUIRED Study the information given below and answer the following questions...

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Accounting

QUESTION 3(20 Marks)
REQUIRED
Study the information given below and answer the following questions independently:
3.1 Use the marginal income ratio to calculate the break-even value. (4 marks)
3.2 Calculate the sales volume required to achieve a net profit of R1740000.(4 marks)
3.3 Calculate the total Marginal Income and Net Profit/Loss if an increase in
advertising expense by R200000 is expected to increase sales by 3000 units. (4 marks)
3.4 Calculate the margin of safety (in units) if the variable manufacturing costs
increase by 10% and fixed manufacturing overheads cost increase by R24450.(4 marks)
3.5 Based on the expected sales volume of 40000 units, determine the sales price
per unit that will allow the company to break even. (4 marks)
INFORMATION
Peryton Limited produces only one product. Expected sales are 40000 units per year and sales price
is R150 per unit. The relevant costs are as follows:
Unit Variable cost Total fixed cost
Direct materials R30-
Direct labour R36-
Manufacturing overheads R15 R450000
Marketing expenses R9 R150000
Administrative expenses - R180000

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