Required: 1. Assuming that the given sales mix is maintained, calculate Trendee Band Company's breakeven point for the forthcoming 3-month period a. b. In number of wrist bands for all 3 products separately and as a total? In dollars of sales revenue for all 3 products separately and as a total? (3 marks) 2. Calculate the margin of safety for Trendee in total number of wrist bands and sales revenue at the predicted sales level for the next 3 months? (1 mark) 3. Sketch a cost-volume graph (breakeven chart) for the forthcoming 3-month period, assuming the given sales mix is maintained. It does not need to be to scale but you should include the identification of the level of fixed costs, the total cost line (with slope identified), the revenue line (with slope identified) and the breakeven point. (1 mark) 4. Calculate Trendee's net profit for the forthcoming 3-month period if the sales of Boyz were 20,000 units fewer than planned and the sales of Crme were 20,000 more than planned (Ace sales were on target)? (1 mark) 5. Calculate Trendee's breakeven point in number of wristbands (of all 3 products and as a total) for the situation in Requirement 4? (2 marks) 6. How would an increase in the company income tax rate affect the break-even point calculated in Requirement 5? (1 mark) 7. How do your answers to Requirements 1) and 5) compare? Explain why they are the same of different. (1 mark) The Trendee Band Company sells three types of wrist bands, Ace, Boyz and Crme. All wrist bands have the same variable costs of $3/unit. Ace is the most expensive band selling for $6/unit, which is 50% more than the sales price for Crme. Boyz sells for 25% more than Crme. The marketing Manager foresees sales of 200,000 units in the coming 3-month period, consisting of 20,000 units of Ace, 100,000 of Boyz and 80,000 of Crme. Sales of wrist bands are typically constant across the year. The company income tax rate is 35%. The Trendee Band Company plans to sell everything it produces and not carry any excess inventory. It uses normal costing and its manufacturing overheads (all fixed) are allocated on the basis of normal volume at $0.80/wrist band. The normal volume for this year is 50,000 less than master budget volume. Fixed non-manufacturing costs are deemed to be more related to capacity to supply and are allocated to products on the basis of practical capacity. The allocation rate is $0.40/wrist band and practical capacity is 40% larger than normal volume