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{"ops":[{"insert":"\nQUESTION ONE  INFORMATION\nBusta Limited plans to manufacture bar fridges and the following information is applicable:\n\u00a0Estimated sales for the year Estimated costs for the year: Variable costs\nDirect Material\nDirect Labour\nVariable Manufacturing Cost Selling expenses\nFactory overheads (all fixed) Administrative expenses (all fixed)\nREQUIRED:\n5 000 units at R3 400 each\nR520 per unit\nR350 per unit\nR110 per unit\n6% of selling price per unit sold\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0R625 000 R462 000\n\u00a0\u00a01.1 Calculate the total net profit for the estimated figures.\n1.2 Calculate the break-even quantity\n1.3 Calculate the break-even value\n1.4 Calculate the break-even value using the marginal income ratio.\n1.5 Calculate the target sales volume to achieve a profit of R920 500..\n1.6 Calculate the new break-even quantity and value if the selling price is increased by 12% 1.7 Calculate the margin of safety in units at the original budgeted volume and price\n\n"}]}

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