Question 2.2

2.2 2.2.1 Use the information provided below to answer the following questions: Calculate the break-even quantity (3 marks) 2.2.2 Will the project manager be satisfied with the break-even quantity? Explain. (2 marks) 2.2.3 Calculate the sales volume that is required to achieve a profit of R500 000. (3 marks) INFORMATION Makron Manufacturers manufactures and sells one product from Project M and the following are the projections for 2022 The sales volume and sales value are estimated to be 60 000 units and R6 000 000 respectively. Direct materials cost direct labour cost and variable manufacturing overheads cost are expected to be R2 040 000, R720 000 and R480 000 respectively. Fixed manufacturing and administration costs are estimated at R800 000 and R560 000 respectively. Variable marketing costs are budgeted at R360 000