Mermaid Enterprises operates a single-product entity. Data relating to the product for 2019 are as follows.

Required
(a) Calculate the break-even in both dollars and units for 2019.
(b) Calculate the margin of safety in both units and sales dollars.
(c) Calculate the profit achieved in 2019 given the annual volume of 64000 units.
(d) Changes in the marketing strategy are planned for 2020. This would increase variable marketing and distribution costs by $4 per unit, and reduce fixed non-manufacturing costs by $160000 per year. Calculate the units that would need to be sold in 2020 to achieve the same profit as in 2019.
(e) Would you recommend the change? Explain.

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Annual volume Selling price per unit Variable manufacturing cost per unit Annual fixed manufacturing costs Variable marketing and distribution costs per unit Annual fixed non-manufacturing costs 64 000 units $ 60 28 240 000 12 720 000