Question B.3 (a) Amber Ltd makes a single product with a total capacity of 400,000 litres pa. Cost & sales data are as follows: Selling price: 1.00 per litre. Marginal cost 0.50 per litre. Fixed cost 100,000 Draw a traditional break-even chart to show the likely profit at the expected production level of 300,000 litres. What is the output level of production to achieve the break-even point? [15 marks] (b) Buchan enterprise is investing in a new project. The project will start on 1st January in Year 1 at a cost of 500,000. The net cash flow estimated to be received during each year of the project is given in Table B.31. Assuming the rate of return to be 8%, calculate project's overall return using the discounted payback method. Table B.31 Net cash flow during each year Year ('s) Year 1 20,000 50,000 Year 2 Year 3 100,000 Year 4 200,000 Year 5 300,000 30,000 Year 6 700,000 200,000 Net profit [10 marks)