Q$2$: CVP Analysis $(18$ marks$)$

The manager of Calypso, Incorporated, is considering raising its current price of $$30$ per unit by $10\%.$ If she does so$,$ she estimates that demand will decrease by $20,000$ units per month. Calypso currently sells $50,000$ units per month, each of which costs $$25$ in variable costs. Fixed costs are $$180,000.$

Required:

$\backslash$table$[[,$Items,Answers,$],[5.,$What is the current profit?,$\backslash$table$[[$$ $-$ Type the figure only$],[$in your answer, e$.$g$.],[1000)]],3$ marks$],[6.,\backslash$table$[[$What is the current break$-$even point in$],[$units$?]],\backslash$table$[[-\_-\_$units$],[($Type the figure only$],[$in your answer, e$.$g$.],[1000)]],3$ marks$],[7.,\backslash$table$[[$If the manager raises the price, what will$],[$profit be$?]],\backslash$table$[[$$ $$----],[($Type the figure only$],[$in your answer, e$.$g$.],[1000)]],3$ marks$],[8.,\backslash$table$[[$If the manager raises the price, what will$],[$be the new break$-$even point in units?$]],\backslash$table$[[--\_$units$],[($Type the figure only$],[$in your answer, e$.$g$.],[1000)]],3$ marks$],[9.,\backslash$table$[[$Assume the manager does not know how$],[$much demand will drop if the price$],[$increases$.$ By how much would demand$],[$have to drop before the manager would$],[$not want to implement the price increase?$]],\backslash$table$[[($Type the figure only$],[$in your answer, e$.$g$.],[1000)]],6$ marks$]]$