Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are pa

Jabu manufactures and sells Product X.  During the most recent financial period, he sold 500 units at R750 each.  There were no units of Product X in opening or closing inventory.  Sales people are paid a commission of 5% on sales.  The following additional information is available for this sales level:

Fixed administrative cost per unit                                                                  R90.00

Total fixed manufacturing overhead                                                              R120 000

Total fixed marketing cost                                                                              R50 000

Direct material usage per product                                                                  2 kg

Direct material price per kilogram                                                                  R14.50

Total direct labour cost                                                                                   R47 500

Required:

(a)               Compile a marginal income statement to determine the break-even units and break-even value. (10 Marks)