marry poppins a friend of yours has recently set up a small business making curtains, she supplied you with the following figures and has asked your advice on a number of issues

a. how much profit she will make at the proposed productionlevel and selling price

b. how many pairs of curtains she needs to sell to break even at the this price

Cost per month

Matrials 4100

labour 5000

Production overheads 2000

selling and distribution 1000

administration overheads 500

above costs are based on producing 1200 pairs of curtains per month at selling price of R15 each

80% of labour is fixed, as the 75% of production overheads,60% of selling and distribution and 100% of administration overheads. All other costs vary directly with output.