Calculate the margin of safety in each month with the financing of R200 000. Bear in mind that financing requires interest payments.
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9 of 10 . Cash Budgets and Break Even Analysis Cape Town based business has approached you for assistance with their cash budget. They have given you the following information to prepare the b They anticipate the following unit sales for the next few months: October November December January February March Sales units 80000 90000 110000 120000 125000 118000 Selling price per unit is R10 and Purchasing costs are R6.50 per unit. 2. Receipts from Sales are broken down as follows: a. 20% Cash sales b. 30% payable in the following month after sales c. Balance in the second month after sales 3. Payments for purchases are broken down as follows: a. 50% cash payments for purchases in month of purchase b. 25% payment in the month after the purchase c. Balance in the second month after purchase. 4. The company has wage bill of R25 000 per month and Rent of R15 000 per month. The company must pay R750 000 in tax in February. 5. There is a credit facility that charges 2.5% per month with the principal amount repaid at the end of six months. The company would like to use this facility by borrowing R200 000 at the beginning of October, (Please note interest payments start in October). Question 30 of 34 6 Points W
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