Question 2 Gulp Ltd retails two products: A and B. The budgeted income statement for the next period is as follows:- A B Total Units sold 150.000 50,000 200,000 Sales revenues A: RM25 p/unit & B: RM35 p/unit RM3,750,000 RM1,750,000 RM5,500,000 RM_900.000 RM3.000.000 Variable costs A: RM14 p/unit & B:RM18 p/unit RM2.100.000 Contribution margins A: RM11 p/unit & B: RM17 p/unit RM1,650,000 Fixed costs Operating income RM 850,000 RM2,500,000 RM1.500.000 RM1.000.000 Required: (a) (1) For the two products, compute the breakeven point in batches and units with the planned sales mix above. (6 marks) (11) Compute the profit-volume ratio for A and B. (2 marks) (iii)Compute the margin of safety in units) for A and B. (2 marks) (b) Suppose 200,000 units are sold but only 20,000 of them are A. (1) Compute the operating income m2 marks) (11) Now recalculate the breakeven point in batches and units mlo marks) (111)Compare your answer in (b)(ii) with (a)(1). What conclusion can you make here? (2 marks) (c) Explain TWO (2) assumptions on which the cost-volume-profit analysis is based. (5 marks) [Total: 25 Marks)