PLEASE ANSWER THE QUESTION :

Question 5

Loud Noise Limited presently produces bikes and treadmills for the Indonesian and Chilean markets but is looking to expand to cover a greater international range.

The key planned financial information related to the companys key products for 2028 are as follows:

Activity	Bikes	Treadmills
Selling Price	$250.00	$230.00
Direct Material (per unit)	$45.00	$110.00
Direct Labour (per unit)	$39.00	$15.00
Variable Manufacturing Overhead (per unit)	$41.00	$26.00
Variable Selling Expense (per unit)	$26.00	$19.00
Fixed Manufacturing Overhead (total)	$1,140,000	$400,000
Fixed Administrative Overhead (total)	$560,000	$600,000
Fixed Marketing Overhead(total)	$900,000	$850,000

The company has a sales mix ratio of 60% to 40%. The company has estimated that in 2028 they will produce and sell 80,000 total units.

Required:

1) Calculate the contribution margin per unit and the contribution ratio for Loud Noise Limited based on production and sales estimates for 2028 and based on the sales mix of 60% to 40%.

2) Calculate the total number of units that are required to be sold in 2028 in order for Loud Noise Limited to breakeven given the 60% to 40% mix ratio.

3) Calculate the total sales revenue Loud Noise Limited would achieve at the breakeven quantity given the 60% to 40% sales mix ratio and projected production and sales estimates for 2028.

4) Assume in 2028 the minimum net income Loud Noise Limited wishes to achieve is $6,000,000. Given the sales mix ratio of 60% to 40%, what is the revenue Loud Noise Limited would generate to ensure achieve the desired minimum net income and the number of bikes and treadmills to be sold?