$3\mathrm{.}1$ Priory Pudding Place is a roadside pudding company in Priory St$.$ Ann. The firm

specializes in a variety of puddings. Tour operators would stop at the facility to allow visitors

to taste a slice of authentic Jamaica cuisine

The firm has provided the following data regarding its operations

i$.$ Direct costs for raw materials amount to $$25$ per unit

ii$.$ Indirect costs for packaging and garnishing is $$5$ per unit

iii. Annual fixed costs consist of

Administrative expenses $$600,000$

Selling and distribution $$400,000$

iv$.$ The pudding is sold for $$70$ per unit

Required :

a$.$ State four $(4)$ assumptions of the break even analysis

b$.$ Calculate the break even point in units

c$.$ Given that the firm has the capacity to produce $50,000$ units,

construct a contribution break graph to illustrate the performance

for the year.

On the graph number the sections that shows $($i$)$ the break even point,

$($ii$)$ the fixed cost region, $($iii$)$ the variable cost region, $($iv$)$ the revenue region, $($v$)$ the

contribution region, $($vi$)$ the profit region, $($vii$)$ the loss region, and $($viii$)$ the margin of

safety

d$.$ What level of sales in units is required in order to achieve an after$-$tax

profit of $$45,000,$ given a tax rate of $25\%$