REQUIRED Refer to the information given below and answer each of the following questions independently:...

90.2K

Verified Solution

Question

Accounting

image REQUIRED Refer to the information given below and answer each of the following questions independently: 3.1 Calculate the margin of safety (in units). (4 marks) 3.2 Calculate the total Contribution Margin and Operating Profit/Loss if an increase in the salaries expense of salespersons by R480 000 is expected to increase sales by 450 units. 3.3 Suppose Sinclair Limited decided to set the sales price at R1 728 per unit. If sales drop (3 marks) to 3500 units, how much more can the company spend on advertising and be able to generate an operating profit of R1 000000 ? (4 marks) 3.4 Should management consider a drop of R60 per unit in the selling price if the sales volume is expected to increase to 4400 units? Motivate your answer with the relevant calculations. (4 marks) 3.5 Determine the selling price per unit that will enable the company to achieve an operating profit of R1 602000 . (5 marks) INFORMATION Sinclair Limited is analysing whether its new product will be profitable. The following data, based on expected sales of 4000 units is nrnvided for analusis

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students