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INFORMATION

Maslow Manufacturers manufactures and sells one product from Project M and the following

projections apply to $2018$:

Sales R$3000000$

Direct materials cost R$1020000$

Direct labour cost R$360000$

Variable manufacturing overheads R$240000$

Fixed manufacturing overheads R$400000$

Fixed selling and administration costs R$280000$

Variable selling and administration costs R$180000$

$60000$ units of the product are expected to be manufactured and sold.

$4\mathrm{.}1\mathrm{.}1$ Calculate the break$-$even quantity. $4\mathrm{.}1\mathrm{.}2$ Calculate the break$-$even value. $(2$ marks$)$

Consider each of the following questions independently:

$4\mathrm{.}1\mathrm{.}3$ Calculate the total Marginal Income and Net Profit$/$Loss if the sales volume is $20\%$ below

expectations. $(4$ marks$)$

$4\mathrm{.}1\mathrm{.}4$ Calculate the break$-$even quantity if Maslow Manufacturers wants to make provision for a

$10\%$ decrease in fixed costs and a R$2$ per unit decrease in the selling price.