The financial manager of Colatonic Ltd read about the plight of the local child welfare organisation which

aimed to supplement its funds by making and selling cooking bags which can slow$-$cook meals or keep food

warm for long periods. The financial manager approached the board of directors who agreed that the

company should assist the organisation. After discussions with the president and treasurer of the welfare

organisation the following budgeted information for $2024$ was gathered to assist with trying to improve the

profitability and break$-$even quantity for the year:

The fixed and variable manufacturing costs are estimated to be R$240000$ per annum and R$42$ per unit

respectively. The selling price of the cooking bags will be R$120$ each. The selling and distribution costs are

expected to total R$15000$ per month plus $5\%$ of sales. The administration costs are estimated at R$31000$ per

month plus R$6$ per unit sold. $15000$ cooking bags are expected to be sold.