Materials: Butter 3,?00 Chocolate 5,000 Depreciation 2,370 Direct labour 12,000 Milk 3,550 Power supply 11,000 Rates 600 Rent 2,000 Salaries 12,300 Sales commission 13,400 Heating and lighting includes a 25 percent xed charge. The product is to be sold at 2 per bar. You are required to: a] Calculate the breakeven point for this product. (16 marks) b] Calculate the margin of safety as a percentage of sales units. (3 marks) c) What is the profit I (loss) at a sales volume of 50,000 units. (3 marks) d) Accurately draw a graph showing the following: i. Fixed costs ii. Total variable costs iii. Total costs iv. Total revenue v. Breakeven point vi. Margin of safety {10 marks} e] In this company's business proposal they have stated their aim is to achieve a yearly ROCE of 5%, their initial capital was 3,000,000. How many units of their product need to be sold monthly to achieve this ROCE target? What does your answer tell you? (5 marks} 1) Based on your answers for a) and b). how does the breakeven point and the MOS change if the company decides to increase their price by 15%, which in turn would lead to a reduction in units sold by one third. {7 marks} 9] Describe the limitations of the BreakEven method and elaborate why it might be difficult for a company with three products to apply this approach. [R m:- rlre'l