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QUESTION 4 (20 Marks) BREAK-EVEN ANALYSIS AND PROJECT PORTFOLIO MANAGEMENT 4.1 4.1.1 4.1.2 4.1.3 4.1.4 REQUIRED Use the information provided below to answer the following

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QUESTION 4 (20 Marks) BREAK-EVEN ANALYSIS AND PROJECT PORTFOLIO MANAGEMENT 4.1 4.1.1 4.1.2 4.1.3 4.1.4 REQUIRED Use the information provided below to answer the following questions: Calculate the break-even quantity. (4 marks) Calculate the break-even value. (2 marks) Consider each of the following questions independently: Calculate the total Marginal Income and Net Profit/Loss if the sales volume is 20% below expectations. (4 marks) Calculate the break-even quantity if Maslow Manufacturers wants to make provision for a 10% decrease in fixed costs and a R2 per unit decrease in the selling price. (4 marks) INFORMATION Maslow Manufacturers manufactures and sells one product from Project M and the following projections apply to 2018: Sales R3 000 000 Direct materials cost R1 020 000 Direct labour cost R360 000 Variable manufacturing overheads R240 000 Fixed manufacturing overheads R400 000 Fixed selling and administration costs R280 000 Variable selling and administration costs R180 000 60 000 units of the product are expected to be manufactured and sold

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