Home / Expert Answers / Accounting / question-3-20-marks-required-use-the-information-given-below-to-answer-each-of-the-following-ques-pa508

(Solved): QUESTION 3 (20 Marks) REQUIRED Use the information given below to answer each of the following ques ...



QUESTION 3 (20 Marks) REQUIRED Use the information given below to answer each of the following questions independently: 3.1 How many units must Pentel Limited sell to break even? (4 marks) 3.2 Calculate the margin of safety (in rands). (4 marks) 3.3 Use the marginal income ratio to determine the sales value required to achieve a net profit of R720 000. (4 marks) 3.4 Based on the expected sales volume of 12000 units, determine the sales price per unit (expressed to the nearest cent) that will allow the company to break even. (4 marks) 3.5 Suppose Pentel Limited decides to advertise the product heavily and set the sales price at R160 and the sales commission at \( 15 \% \) of sales. If a further R40 000 is spent on advertising and the sales increases to 13000 units, calculate the total Marginal Income and Net ProfitLoss. INFORMATION



We have an Answer from Expert

View Expert Answer

Expert Answer


We have an Answer from Expert

Buy This Answer $5

Place Order

We Provide Services Across The Globe