5 (Cost-volume- Profit analysis) 20 Marks Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month: Direct materials $100,000 Direct labour Variable overhead Fixed overhead $50,000 $80,000 $30,000 Variable selling & admin expenses $48,000 Fixed selling & admin expenses $32,000 Required: a) At sales price of $38.00 per unit, how many units would Ganges have to sell in order to break-even? b) At a sales price of $43.00per unit, how many units would Ganges have to sell in order to produce a profit of $20,000? c) If 16,000 units were sold, what price would Ganges have to charge in order to produce a profit of $42,000 d) Provide one example of management decisions that benefit from cost-volume-analysis (CVP)