Question 4: CVP Analysis & Sustainability [Total: 32 marks] Part A Bounce Ltd makes baseballs that sell for $12.50 each. The company's current annual production and sales are 240 000 baseballs. Annual fixed costs are $589,550. Variable costs for each baseball are as follows: Direct material Direct labour Variable overhead Variable selling expenses Total variable cost $3.00 1.50 0.40 1.10 $6.00 Required: Show all your workings. i. Calculate the break-even point in number of units. (2 marks) ii. Calculate the break-even point in dollars. (2 marks) iii. How many baseballs must the company sell if it wants to earn an after-tax profit of $657,800 with a tax rate of 20 per cent? (3 marks) iv. How many baseballs would the company need to sell to break even if its fixed costs increased by $7,865? (Using original data). (2 marks) V. Bounce Ltd has received an offer to provide a one-time sale of 8,000 baseballs at $10 each to a network of sports superstores. This sale would not affect other sales, nor would the cost of those sales change. However, the variable costs of the 8,000 baseballs would increase by $0.30 per ball for shipping, and fixed costs would increase by $18,000: a. Based solely on financial information, should the company accept this offer? Show your calculations. (5 marks) b. What non-financial factors might the company wish to consider in accepting or rejecting this offer? Explain