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Unformatted text preview: s to increase its total contribution margin by 40%, it will need to increase its sales by about:
none of the above CVP.06 If the company wants its margin of safety to equal R40,000, it will need to sell about:
500 units CVP.07 If the company's fixed expenses decrease by 20%, the break-even point will change from its previous level by about a:
232 unit increase
510 unit decrease
232 unit decrease
510 unit increase
510 unit increase CVP.08 Biggers Limited expects the following results for the next accounting period:
Expected production and sales in units R240,000
3,000 The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by R10,000.
If advertising expenditures ar...
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- Spring '14