Question: Please help me with the solution for this problem. Include rough workings as well if possible Q No. Q1 Voltar Inc. manufactures and sells specialised

Please help me with the solution for this problem. Include rough workings as well if possible

Please help me with the solution for this problem. Include rough workings

Q No. Q1 Voltar Inc. manufactures and sells specialised cordless telephones. The company's income statement for the most recent year is given below: Total ($) Sales (20,000 units) 1,200,000 Variable Expenses 900,000 Fixed Expenses 240,000 Operating Income 60,000 The management is anxious to increase the company's profit and asked for the following analysis: 1a Calculate the company's break even point (in units) and margin of safety (in dollars) 1b If the company wants to earn profit of at least $90000, how many telephones will have to be sold? 1c In an effort to increase sales and profits, management is considering the use of a higher- quality speaker. The higher quality speaker would increase variable cost by $3 per unit, but the management could eliminate one quality inspector who is paid a salary of $30000 per year. The sales manager estimates that the higher quality speaker would increase annual sales by at least 20% What will be the impact of the above changes on Operating Income and Break even point? Would you recommend the change? Justify your answer 1d What will be the impact of the following on break-even point: (i) Entry of a new competitor in the market leading to downward price pressure (ii) A recent initiative to replace all corded telephones with cordless telephones in government offices (iii) A forcible closure of the factory for 2 months due to a labour strike (iv) Decrease in import duty on input components

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