NIKEL Ltd. manufactures t-shirts, which sell at 25 each. Table 5 shows the sales(units) and total costs () for the period July 2021 to December 2021. Fixed costs have been the same each month and it is expected to remain constant for the remainder of the financial year (up to and including March 2022).

Table - Sales Volume and Total Costs

Month	Sales (units)	Total Cost ()
July	14,500	195,000
August	15,100	200,400
September	35,000	370,000
October	19,100	241,000
November	13,000	150,000
December	24,800	308,060

With reference to Table above and using the high-low method:

1. Estimate the variable cost per t-shirt produced and sold.Show your calculations.[5marks]
2. Using the information in (1) above estimate the fixed cost.Show your calculations.[5marks]
3. Using the information in (1) and (2) above, how many t-shirts should NIKEL Ltd. produce and sell in January 2022 to break even?Show your calculations. [5marks]
4. How many t-shirts does the company need to produce and sell to achieve a profit target of 200,000 in January 2022? Show your calculations.[5marks]
5. Calculate the margin of safety for January 2022, assuming the profit target for that month has been achieved? Show your calculations.[5marks]
6. Advise the sales manager of NIKEL Ltd on the following:
   1. Why the use of High - Low is appropriate for finding the variable cost in this situation[1marks]
   2. Interpret the margin of safety for January 2021[2marks]
   3. The importance of break-even analysis[2marks]