A building company constructs a standard unit which sells for $30 000. The company's costs can be readily identifiable between fixed and variable costs. Budgeted data for the coming six months includes the following: Profit Sales (in units) January February March April 70 000 100 000 250 000 130 000 160 000 40 000 May June You are told that the fixed costs for the six months have been spread evenly over the period under review to arrive at the monthly profit projections. Required: a. Determine the variable cost per unit. b. Determine the total fixed costs for the six months period. c. Determine the break-even point in units and sales revenue for the six months period. d. The margin of safety for the total budgeted sales in units and in sales dollars. e. The company is worried about the low level of sales. The sales director says that if the selling price of the unit was reduced by $5,000, the company would be able to sell 10% more in units. You are told that all other costs would remain the same. Determine whether the company should reduce the selling price to attract new sales in order to maximize profit. Evaluate whether the assumption that costs are readily identifiable as either fixed or variable throughout a range of production is realistic. Give examples of any alternative classification