1 Guaner Sdn. Bhd. makes a product that sells for RM200 per unit. The variable costs to make wwwwwwww www this product are RM120 per unit. Fixed costs total RM500,000 for a year. Guaner currently sells 7,500 units each year. REQUIRED: (a) Calculate the number of units that Guaner must sell to break even (b) Calculate the number of units that Guaner must sell to make RM200,000 in profit. www. (c) Guaner can purchase equipment that will automate its production facility. This equipment will raise Guaner's fixed costs to RM600,000 per year. Automation will cause the product's variable costs to drop to RM100 per unit. How many units will Guaner need to sell to make a RM200,000 profit if the factory is automated? (d) Guaner estimates that RM40,000 of radio advertising could increase the company's sales by 10%. Should the company purchase the radio ads? (Use the original cost data to answer this question; do not include any changes due to factory automation) (e) Would an increase in variable costs per unit cause a company's break-even point to increase or decrease? Why? (f) Would an increase in per-unit selling price cause a company's break-even point to increase or decrease? Why? Left Tab