Question: Question 2 (4 Marks) FFF Ltd has provided the following production and sales information for each unit produced: Direct materials 22 Direct labour 35 Variable

Question 2 (4 Marks) FFF Ltd has provided the following production and sales information for each unit produced: Direct materials 22 Direct labour 35 Variable factory overhead 15 Selling price 180 Sales commissions 10% of the selling price The fixed costs for the period are $1 125 000. Required A. Calculate the break-even point. (units and dollars) B. Calculate the number of units that must be sold to achieve a profit of $63 000. What is the margin for safety at this sales level? C. Would it be better to sell 16 000 units at a selling price of $180 each or 19 000 units at a selling price of $160? If an additional $63 270 is spent on fixed advertising costs, what level of dollar sales must be attained to earn a new profit of $36 000? Assume that there has been no change in the sales price. D

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