Question 2: The following is the income Statement for infinity Challenge for the month ending June 30, 2022: 2022-07-26 15:31:39 Sales (10,000 units) (-) Variable Cost $7,000,000 1,500,000 Contribution Margin (-) Fixed cost Required: Net Income a. Calculate the Breakeven point in sales value and volutne b. Calculate the margin of safety in units, dollars, and percentage. $ 200,000 c. Compute the units of sales needed to achieve profit of $300,000 d. Refer to the original data. The production manager is considering the use of higher quality components, which would increase direct material costs by $10 per unit leading to an 12 marks) increase in sales of 1,500 units per month. Should the higher-quality components be used? 13 macks) Why/Why not? e Refer to the original data. The sales manager would like to cut the selling price by $2 per unit and increase the advertising budget by $15,000 per month. The sales manager believes that if these two changes are made, the unit sales would increase by 50% Should the changes be made? Why/Why not? 11 mark 14 marks) Answer: 14 marks]

Quculian 27 the following is the income statement icsuce. June 30,2027 . Frion the moreh ending. Required: 2. Calculate the Breakeven point in sates value b Calculate the matereven point in saies value and voletne C. Compute the margin of salety in units, dollars, and percemtace. \{3 marks] d. Refer to the origits of sales necded to achicve profie of $300,000 i3 macks components, which wata the production manazer is candideting the wse or higher is marry) Why/Why not? Wer month. Should the higher qualisy components bo teses that if these there the advertising budget by $15,000 per month the seliang perice brS2 per changes be two changes are made, the unit sales would increase by wases manseer believes Answer: ia markil