Please help me solve this in detail I don't understand this question.

Q3. Taylor Ltd manufactures a single product using a labour intensive production process. Its quality control department tests the final product before it leaves the factory and at present 20% of its pre- inspection output is rejected and scrapped. Scrap units have no value and cannot be reworked. Taylor builds the cost of scrapped units into the cost of good production. A standard cost card for Taylor's product under its current production method is given below per unit Direct material 3 kgs at 5 per kg 15.00 Direct labour (variable) 10.00 Variable overhead m5.00 ------ Cost pre-inspection per unit produced 30.00 Cost of rejects 7.50 37.50 60.00 Variable cost per good unit Selling price per good unit Contribution per good unit 22.50 Total fixed overheads are budgeted at 148,500 per month. Taylor currently sells 9,000 units per month. Negligible stocks are held. A proposal is being considered to reduce the reject rate: To automate the process by hiring a machine for 120,000 per month. This would lead to a 50% reduction in labour cost per unit and the quality of the manufacturing process would improve so that reject rates would fall to 5% of pre-inspection output. Variable overhead and material cost per unit (pre-inspection) would be unchanged. Existing fixed overheads would be unchanged. Required: (a) Calculate the break even point in good units per month for the current manufacturing process. (2 marks) (b) Calculate the break even point in good units per month for the automated process under the proposal. (5 marks) (c) Calculate the output level in good units per month at which proposal 1 and the current manufacturing process would have the same total cost. Comment briefly on your result