can you please help me out with this question.

Highwire Ltd ("Highwire") is a company manufacturing computer hardware. As part of the decision made by directors of the company, management is currently considering to produce two new products using a manual production process. The company will require additional factory space in order to make the two products as the current factory space is fully occupied. The management accountant of the company prepared the following budgeted data for the manufacturing of the two products using a manual production process. Product A Product B Selling price/unit R20 R50 Direct material and labour per unit R15 R31 Fixed production overhead per month (allocated on R27 900 direct labour hours) Fixed administration overhead per month (allocated on R3 600 sales value) Notes: 1. The fixed overhead in the budget can only be avoided if neither product is produced. Facilities are fully interchangeable between the two products 2. The company has the option to produce the products using a computer-aided process instead of the manual production assumed in the budget above. This process will cut variable costs by 15% and increase fixed costs by R12 000 per month 3. There is uncertainty with regards to the demand of Product B, as such the company will have to introduce a three month credit sale. The bad debt and administration cost are expected to be 4% of the sales value of Product B. 4. Both products are expected to be sold at the prices assumed in the budget and management is confident about the accuracy of cost forecasts. 5. The sales mix for Product A and Product B is expected to remain constant. Marks 4 REQUIRED (a) Calculate the monthly sales revenue at which operations will break-even as well as the indifference point for each process (manual and computer- aided) if: ) Product A alone is sold; and Product A and product B units are sold in the ratio of 4:1, with Product B being sold on credit. Show all calculations clearly. Round all calculations and your final answer to 2 decimals, i.e. 4,138329 rounded to 4,14. Total for Question 3 11 15 Highwire Ltd ("Highwire") is a company manufacturing computer hardware. As part of the decision made by directors of the company, management is currently considering to produce two new products using a manual production process. The company will require additional factory space in order to make the two products as the current factory space is fully occupied. The management accountant of the company prepared the following budgeted data for the manufacturing of the two products using a manual production process. Product A Product B Selling price/unit R20 R50 Direct material and labour per unit R15 R31 Fixed production overhead per month (allocated on R27 900 direct labour hours) Fixed administration overhead per month (allocated on R3 600 sales value) Notes: 1. The fixed overhead in the budget can only be avoided if neither product is produced. Facilities are fully interchangeable between the two products 2. The company has the option to produce the products using a computer-aided process instead of the manual production assumed in the budget above. This process will cut variable costs by 15% and increase fixed costs by R12 000 per month 3. There is uncertainty with regards to the demand of Product B, as such the company will have to introduce a three month credit sale. The bad debt and administration cost are expected to be 4% of the sales value of Product B. 4. Both products are expected to be sold at the prices assumed in the budget and management is confident about the accuracy of cost forecasts. 5. The sales mix for Product A and Product B is expected to remain constant. Marks 4 REQUIRED (a) Calculate the monthly sales revenue at which operations will break-even as well as the indifference point for each process (manual and computer- aided) if: ) Product A alone is sold; and Product A and product B units are sold in the ratio of 4:1, with Product B being sold on credit. Show all calculations clearly. Round all calculations and your final answer to 2 decimals, i.e. 4,138329 rounded to 4,14. Total for Question 3 11 15