Jenny Enterprises operates as a product entity. Data relating to the product for 2021 were as follow:

Annual Volume	32000 units
Selling price per unit	$60
Variable manufacturing cost per unit	$28
Annual fixed manufacturing cost	$120,000
Variable marketing and distribution costs per unit	$12
Annual fixed non-manufacturing cost	$360,000

Required:

1. Calculate the break-even in both dollars and units for 2021. [3+3= 6 marks]
2. Calculate the margin of safety in both units and sales dollars. [3+3= 6 marks]
3. Calculate the profit achieved in 2021 given the annual volume of 32000 units. [5 marks]
4. Jenny enterprises planning to change the variable marketing and distribution costs by $5 per unit and reduce the fixed non-manufacturing costs by $90,000 per year. Calculate the units that would need to be sold in 2022 to achieve the same profit as in 2021. [6 marks]
5. Would you recommend the change? [2 marks]