QUESTION 2 REQUIRED Use the information provided below to calculate the following: 2.1 Break-even value, without considering the two proposals. Total Marginal Income and Net Profit/Loss of each proposal. 2.2 2.3 Break-even quantity of each proposal. INFORMATION The following budgeted information for the month ended 31 December 2021 was provided by Glasfit Ltd for a product produced from one of its projects: Sales (30 000 units X R10 per unit) Total variable costs (30 000 units X R4.50 per unit) Total fixed costs Net profit R300 000 R135 000 R66 000 R99 000 The profit forecast is less than what was hoped for. The sales manager suggested two proposals to improve the position: Proposal A involves launching a new marketing campaign. This would involve additional fixed costs of R16 500 for advertising. Sales volume is expected to increase to 33 000 units, with no change in the unit selling price and variable costs. Proposal B involves a R1 per unit reduction in the selling price. Fixed costs will reduce by R9000. The sales volume is expected to be 35 000 units. NOTE: ALL ANSWERS MUST BE TYPED OUT AND WORKINGS MUST BE SHOWN