1. QUESTION 1 Wales Ltd makes and sells product X. The current selling price is 20 and the total of variable costs per unit is 11. The fixed costs of production are 450,000 and the company currently sells 60,000 units. Required: (a) Calculate the break-even point in units and revenues) of product X for Wales Ltd. (10 marks) (b) Calculate the profit made on sales of 60,000 units. (10 marks) (c) The company will make an advertising campaign costs 100,000 and will improve the product specifications, which will increase the variable cost per unit by 1. This is expected to allow the company to increase the selling price to 22 and the sales is expected to be 62,000 unites. Calculate the new profit figure for the improved product. (15 marks) (d) Discuss the limitations of break-even analysis. (15 marks)