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Moodle & X c 10 + QUESTION 1 PART A - COMPULSORY SECTION A -COMPULSORY Question 1 [20 Marks] PARTA [13 Marks) ARG Inc manufactures and sells a single product. The following data have been extracted from the current year's budget: Sales and production (units) 5,000 Variable cost per unit $50 Fixed cost per unit $70 Contribution margin ratio 75% The selling price per unit for next year is to be 8% above the current year's budgeted figure, whereas both the variable cost per unit and the total fixed costs are forecast to increase by 12% above their budgeted level in the current year. The target for next year is that total profit should remain the same as that budgeted for the current year Required: a) Calculate the CURRENT YEAR budgeted: i Contribution per unit; [2 marks] ii. Total profit [3 marks] II. Breakeven point in units [2 marks) b) Calculate the number of units the company should produce and sell next year to achieve a target profit of $400,000 [6 marks) c BIU ch 0