Solve the question below with the correct answer given: Peter Ltd is a business who makeThe selling price per is $80$ and the summarized profit and loss statement for this product is shown below: Profit gain: Sales : $800,000$ Loss: Direct material : $150,000$ Loss: Direct wages : $180,000$ Loss: Variable overhead : $90,000$ Loss: Fixed production overhead : $55,000$ Loss: Fixed administration overhead:$28,000$ Loss: Fixed selling overhead : $45,000$ The total loss above is $548,000$Total Profit gained : $252,000$At a recent board meeting, the directors discussed various options in order toimprove profitability, and these are: Option $1-$ Reduce the selling price by $10\%$ and increase sales volume by$5\%.$ Option $2-$ Increase marketing costs by $10,000,$ with an increase in sellingprice of $2\mathrm{.}5\%.$ A change in the sales volume is not anticipated.Instruction:Required to be answered:You are required to prepare profit statements and calculate the break$-$even point and margin of safety for each of the possible options. Then, making reference to your calculations recommend to management which of the threewould be the best course of action, giving reasons for your recommendation. For the option that you are recommending, you are to prepare a break$-$even chart clearly showing the break$-$even point and margin of safety.