$1\mathrm{.}2$a

REQUIRED

Use the information provided below to calculate the following independently:

$1\mathrm{.}2\mathrm{.}1$ Break$-$even value.

$(4$ marks$)$

$1\mathrm{.}2\mathrm{.}2$ Total Marginal Income and Net Profit$/$Loss if the sales volume is $20\%$ below expectations.

$(4$ marks$)$

$1\mathrm{.}2\mathrm{.}3$ Break$-$even quantity if Alfredo Manufacturers wants to make provision for a decrease in fixed costs of R$138712$ and a decrease in the selling price of R$4$ per unit.

$(4$ marks$)$

INFORMATION

Alfredo Manufacturers manufactures and sells one product from Project $M$ and the following projections apply to $2024$:

$\begin{array}{cc}\text{S}\text{a}\text{l}\text{e}\text{s}& R6000000\\ \text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{m}\text{a}\text{t}\text{e}\text{r}\text{i}\text{a}\text{l}\text{s}cost& R2000000\\ \text{D}\text{i}\text{r}\text{e}\text{c}\text{t}\text{l}\text{a}\text{b}\text{o}\text{u}\text{r}cost& R760000\\ \text{V}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}\text{m}\text{a}\text{n}\text{u}\text{f}\text{a}\text{c}\text{t}\text{u}\text{r}\text{i}\text{n}\text{g}\text{o}\text{v}\text{e}\text{r}\text{h}\text{e}\text{a}\text{d}\text{s}& R480000\\ \text{F}\text{i}\text{x}\text{e}\text{d}\text{m}\text{a}\text{n}\text{u}\text{f}\text{a}\text{c}\text{t}\text{u}\text{r}\text{i}\text{n}\text{g}\text{o}\text{v}\text{e}\text{r}\text{h}\text{e}\text{a}\text{d}\text{s}& R800000\\ \text{F}\text{i}\text{x}\text{e}\text{d}\text{s}\text{e}\text{l}\text{l}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}\text{a}\text{d}\text{m}\text{i}\text{n}\text{i}\text{s}\text{t}\text{r}\text{a}\text{t}\text{i}\text{o}\text{n}costs& R560000\\ \text{V}\text{a}\text{r}\text{i}\text{a}\text{b}\text{l}\text{e}\text{s}\text{e}\text{l}\text{l}\text{i}\text{n}\text{g}\text{a}\text{n}\text{d}\text{a}\text{d}\text{m}\text{i}\text{n}\text{i}\text{s}\text{t}\text{r}\text{a}\text{t}\text{i}\text{o}\text{n}costs& 6\%of\text{s}\text{a}\text{l}\text{e}\text{s}\end{array}$

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