Answer the questions from the information provided. 2.1 REQUIRED Use the information provided below to calculate...

 

Transcribed Image Text:

Answer the questions from the information provided. 2.1 REQUIRED Use the information provided below to calculate the following before and after the expansion: 2.1.1 Total Marginal Income and Net Profit/Loss for the year 2.1.2 Break-even quantity. (20 Marks) (5 marks) (5 marks) INFORMATION Axar Limited is considering expanding one of its projects. Fixed costs currently amount to R2 000 000 per year and are expected to increase by 50% when the plant expansion is completed. Presently 30 000 units are produced per year. Production will increase by 15 500 units with the expansion. The current variable costs of the product produced at R400 per unit and selling price at R600 per unit are expected to remain the same after the expansion. Answer the questions from the information provided. 2.1 REQUIRED Use the information provided below to calculate the following before and after the expansion: 2.1.1 Total Marginal Income and Net Profit/Loss for the year 2.1.2 Break-even quantity. (20 Marks) (5 marks) (5 marks) INFORMATION Axar Limited is considering expanding one of its projects. Fixed costs currently amount to R2 000 000 per year and are expected to increase by 50% when the plant expansion is completed. Presently 30 000 units are produced per year. Production will increase by 15 500 units with the expansion. The current variable costs of the product produced at R400 per unit and selling price at R600 per unit are expected to remain the same after the expansion.