Appendix 3 prepare and analyse break-even data from the costing information ABC Production Ltd produces a single product. Its costs and sales for the year ended 31 December were as follows: Units sold Sales revenue Direct wages Direct materials Variable overheads Fixed costs 20 000 900 000 200 000 300 000 120 000 205 000 The selling price and all costs were at a constant rate throughout the year. To improve profit for the next year, the following changes are planned ( Units to be sold to increase by 10% () Selling price to be maintained at the current price. Wages to be increased by 3% per unit. (iv) Material costs to be reduced by 5% per unit, this being achieved by changing from a local supplier to an overseas supplier Variable overpeads to be reduced by 0.45 per unit. (vi) Fixed costs to increase by 7 500 per annum