Please solve (a), (b), (c) & (d).

ABC Company plans to sell 100,000 units of its single product X, in a period at a selling price of $15 per unit. Fixed overheads and net profit for the period are expected to be $440,000 and $520,000 respectively using the existing production process. The company is considering a change to its production process. The change would increase the fixed overheads to $700,000 in the period and reduce the variable costs to $3.5 per unit. The selling price will remain constant regardless of production process. Production capacity in both existing and changed processes would be 150,000 units in the period. Required: (a) For the existing production process, calculate breakeven point in units and sales dollars. (4 marks) (b) Advise management, using supporting calculations, of the sales level (units) at which the changed process would become more profitable than existing process. Explain the rationale with appropriate examples. (4 marks) (c) Refer to information of the existing production process, assume the company proposes to produce an additional 50,000 units of a new product, namely product Y. The selling price of product Y is $10 per unit and variable cost is $5 per unit. Compute the number of units and sales dollars for product X and product Y to breakeven in the new sales mix. What advice would you give to the company based on the proposal? (7 marks) (d) Discuss why CVP analysis may not be applicable to a variety of situations