2.1. The demand forecast for Mthembu Enterprises indicates significant growth over the next ten years and this requires the organization to build a new manufacturing facility. There are three (3) potential sites, namely, KwaZulu Natal, Gauteng and Eastern Cape. The fixed and variable cost for each site is listed in the table below:

Potential Site	Fixed Cost (Rs)	Variable Cost (Rs)
KwaZulu Natal	900 000	75
Gauteng	1 500 000	55
Eastern Cape	2 000 000	45

Solve for crossover point KwaZulu Natal and Gauteng.

Solve for crossover point Gauteng and Eastern Cape.

Evaluate the optimum number of products for each site. (15)

2.2 The forecasting information for Siyafunda Trading is provided in the table below:

Month	Actual Sales Units Year 2022
January	8025
February	7650
March	7950
April	6655
May	8452
June	10890
July	8665
August	12775
September	11980
October	14760
November	8730
December	6950

Calculate the 2023 forecast for Siyafunda Trading using the exponential smoothing forecasting technique with a smoothing constant of 0.3 and forecast for January 2022 sales of 9525 units. (10)