QUESTION 4 BREAK-EVEN ANALYSIS (20 Marks) (4) (4) (3) 4.1 REQUIRED Calculate the following from the information provided below: 4.1.1 Total Marginal income and Net profit/loss 4.1.2 Break-even quantity 4.1.3 Selling price per unit that will enable the project to break even. INFORMATION Caprice Limited plans to start Project Star and the following are the forecasts for 2017: Sales 50 000 units at R60 per unit Direct materials cost per unit R18 Direct labour cost per unit R12 Variable selling costs per unit R6 Manufacturing overhead costs (all fixed) R432 000 Fixed selling and administrative costs R528 000 4.2 REQUIRED Refer to the information below and answer each of the following questions independently: 4.2.1 Suppose Tempo Limited wants to increase the selling price of the product by R18 per unit and increase advertising expenditure by R15 300 to maintain the sales volume. Calculate the new break-even quantity (4) 4.2.2 Suppose Tempo Limited wants to make provision for a 10% increase in fixed costs and an increase in direct materials cost of R8 per unit Calculate the new break-even value. (5) INFORMATION The following information regarding a product produced by a project of Tempo Limited is available: Fixed costs per annum R432 000 Marginal income per unit R108 Selling price per unit R180