1. The following information has been extracted from the financial reports of ABC Ltd. $ Sales 25,000 units @ 20 per unit Rent per annum Rates per annum Insurance per annum Overhead costs Other variable costs 500,000 30,000 10,000 15,000 10,000 245,000 Additional information: i. The annual rent, rates and insurance costs are fixed. ii. It has been estimated that 50% of the overhead costs are variable and 50% are fixed. Required: a) Show how many units must be sold to break-even using CVP Analysis. (4 marks) b) How many units must be sold to obtain a profit of $30,000 (Target profit)? (4 marks) c) Calculate the break-even point (units) if fixed costs (including the fixed cost portion of overhead cost) increased to $70,000. (4 marks) d) Explain the effects of relatively high fixed costs & low variable costs, and relatively low fixed costs & high variable costs. (8 marks)