MAC3701 Assignment 2 Semester 1 2026 | Complete Answers – CVP Analysis, Break-Even, Overhead Application, NPV, Payback, Limiting Factors, Responsibility Centres & Special Order Decisions | UNISA Management Accounting

This complete assignment solution is designed for UNISA students enrolled in MAC3701 Application of Management Accounting Techniques for Semester 1 of 2026. It provides fully answered questions for Assignment 2 (Due Date: 16 April 2026). Content includes: Section A – Short Calculation Questions (40 marks) covering break-even point in units and rands using contribution margin per unit; overhead over-applied vs under-applied with explanation; payback period and net present value (NPV) calculation using annuity factors; contribution margin per limiting factor (machine hours) with product prioritisation decision; and margin of safety ratio calculation. Section B – Theory and Application Questions (60 marks) includes: (Question 6) Explanation of the difference between variable costs and fixed costs with two examples each, and discussion of why understanding cost behaviour is important for decision making in a manufacturing company (break-even analysis, pricing, budgeting, make-or-buy decisions); (Question 7) Discussion of relevant costs and qualitative factors for special order decisions below normal selling price, including a practical furniture manufacturing example with idle capacity; (Question 8) Description of the four main types of responsibility centres in a decentralised organisation (cost centre, revenue centre, profit centre, investment centre) with appropriate performance measures for each, and explanation of advantages and disadvantages of decentralisation (faster decision making, motivation, duplication, suboptimal decisions). All calculations show formulas and steps with final answers rounded where applicable. Written answers are in clear numbered paragraphs as required. Includes the actual statement of profit or loss for VCO, Water, and Husk products for December 2025 as part of the assignment context. Perfect for UNISA management accounting students seeking a high-quality, model answer submission for Assignment 2 Semester 1 2026.