4. Read the case and answer the questions that follow: Informatics manufactures computers and is based in UAE. Informatics uses a method of batch production and manufactures batches of computers according to customer specifications such as computer speed and screen size Production workers are paid by the hour but receive a lower-than-average wage for UAE. TO compensate they are offered long-term job security and other non-financial rewards. Informatics does not sell locally in UAE, but exports 4000 computers a year to Pakistan using local independent distributors who have knowledge of the local market as well as experience in delivering and installing computers. 90% of Informatics' sales are organized through such distribution channels. Because using local independent distributors increases the final price of the computer to the customer, senior managers have decided to offer customers in Pakistan the opportunity to purchase computers directly from Informatics. Customers must telephone orders to Informatics in UAE from Pakistan because e-commerce sales are not available Informatics' Board of Directors is currently considering expansion into the Indian market using the same type of distribution channel employed in Pakistan The following are Informatics' expense and sales price figures: fixed costs of $100 000 per year variable costs of 80 % of the sales price sales price of $1000 per computer. 1. Identify two fixed and two variable costs for Informatics. [2 marks] 2. For Informatics: (1) Calculate the break-even quantity in units (show all of your working). [4 marks] Calculate the margin of safety in units (show all of your working). (4 marks] () Calculate the net profit if 4000 computers are sold (show all of your working). [3 marks] (iv) Prepare a fully labelled break-even chart.[4 m 4 marks] (v) Calculate the new number of computers that would need to be manufactured and sold at the current price for Informatics to make a profit of $2,000,000 from both the Pakistani and Indian markets combined, if the Board of Directors decided to proceed with the expansion into India. [3 marks]