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(Solved): REQUIRED Use the information given below to answer each of the following questions independently: ...



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 12 000 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 13 000 units, calculate the total Marginal Income and Net Profit/Loss. (4 marks) INFORMATION Pentel Limited is applying CVP analysis to a new product that it plans to manufacture. The following data, based on expected sales of 12 000 units, are provided for analysis: Variable manufacturing costs R936 000 Fixed manufacturing costs R390 000 Sales commission (calculated at 12% of sales) R216 000 Fixed administrative and marketing costs R96 000 Sales R1 800 000



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