QUESTION 1 Read the following scenario and answer the question that follows: (30 marks) Duzzle Dorff is in the process of starting a small business by making educational wooden puzzles for kids. He asked you to assist him with some financial planning for his new venture. Duzzle plans to sell his puzzles for R100 per unit and his normal production capacity will be 750 units per month. His estimated monthly cost breakdown based on the normal production capacity is: Product Amounts used per unit Price Material Glue 200 ml R20.00 per litre Material - Paint 400 ml R15.00 per litre |- Material Plywood 800 mm R10.00 per metre Labour 2h R8.00 per hour Overhead - Variable 2h R3.00 per hour Overhead - Fixed 2h R5.35 per hour Additional Costs Sales Commission Sales and Administration cost - Fixed 10% of sales R18 975 Duzzle also calculated the break-even point as 540 units. Duzzle is concerned that he will need a bank overdraft to finance his working capital requirements during the start-up of his business and supplied you with the following notes on factors most likely to determine his business' cash flow: 112 HMAC330-1-Jul-Dec2021-SA2-TM-V3-16042021