Reference no: EM132566926

Anglico's most recent income statement is given below.

Sales (8,000 units) R160,000

Less variable expenses (68,000)

Contribution margin 92,000

Less fixed expenses (50,000)

Net income R42,000

Required:

Question a. Contribution margin per unit is R ________ per unit

Question b. If sales are doubled total variable costs will equal R ________

Question c. If sales are doubled total fixed costs will equal R ________

Question d. If 20 more units are sold, profits will increase by R ________

Question e. Compute how many units must be sold to break even. ________

Question f. Compute how many units must be sold to achieve operating income of R60,000. ________

Question g. Compute the revenue needed to achieve an after tax income of R30,000 given a tax rate of 30%.