Since Kopano Ke Matla Construction wants to enter the road construction industry, the company is also considering the acquisition of a quarry for aggregate for road construction. Detail of the quarry is as follows:

The quarry has the capacity to produce up to 600 000 tonnes of aggregate per month. Its fixed cost per month is R9,220,000. The unit variable cost is R1,380 per tonne. The sales price per tonne of aggregate is R1,950. The quarry currently produces 250 000 tonnes per month. Perform breakeven analysis and determine whether the purchase of the quarry is potentially lucrative. Provide reasons for your answers.