Answer ALL the questions $in$ this section.

QUESTION $1$

INFORMATION:

Spring $T-$Shirt Manufacturers made and sold $34000T-$shirts during the year ended $29$ February $2022.$

They produced $25000T-$shirts $in$ the previous year.

All $T-$shirts were sold $at$ a fixed price $ofR45$ each $in2021$ and $2022.$

All finished items were sold. There was $no$ work$-in-$process $at$ the beginning $or$ end $of$ the financial year.

The following total and unit costs were identified:

REQUIRED:

$1\mathrm{.}1$ Calculate the unit costs for $2022$ indicated $as(a),(b)$ and $(c)in$ the table above.

$1\mathrm{.}2$ Compare the unit costs $of2022$ with those $of2021.$ Some $of$ the unit costs have been affected $by$

inflation $(increased$ prices$).In$ each $of$ the following cases give a possible reason $(other$ than inflation$)$ for the

change:

Direct materials cost per unit

Direct labour cost per unit

Factory overhead costs per unit

$1\mathrm{.}3$ Break$-$even point $in$ units.

Calculate the break$-$even point for $2022in$ units.

Comment $on$ the break$-$even point calculated above. Should the business $be$ satisfied with the number $of$

units that are currently being produced? Explain.