Estimated sales for the year 5 000 units at R3 400 each

Estimated costs for the year:

Variable costs

Direct Material R520 per unit

Direct Labour R350 per unit

Variable Manufacturing Cost R110 per unit

Selling expenses 6% of selling price per unit sold

Factory overheads (all fixed) R625 000

Administrative expenses (all fixed) R462 000

1.1 Calculate the total net profit for the estimated figures.

1.2 Calculate the break-even quantity

1.3 Calculate the break-even value