(a) Determine the sales at the break-even point for this product.(10 marks)(b) Calculate the contribution sales ratio.(5 marks)(c) Determine the sales needed to achieve a target profit of 200,000.(10 marks)(d) If the company reduced its selling price to 7 per unit in the face of increased competition, determine the effect on the break-even point and the profit.(15 marks)(e) In the context of break-even analysis, discuss and graphically illustrate the role of the concept of "Margin of Safety" in managerial decision-making.(10 marks)

Sky Corporation makes a product which is sold to house builders in an expanding but very competitive market. The product is a device for providing ventilation at the eaves of domestic houses. The company's profit and loss statement for the most recent month is given below. All values are in sterling pounds (E).Coursework One of One Part One Grove Alliance lnc. is considering a major investment project. The initial outlay of 1,050,000 will, in subsequent years, be followed by positive cash flows as shown below: -1l2l3l4l5l6l7 Cashflow 70,000 107,000 357,350 510,000 350,000 225,000 80,000 The management of Grove Alliance lnc. expect that the cash inows shown above are also an accurate estimation of the prot for each of the years. They estimate the appropriate discount rate as 12 per cent per annum. After the end of the seventh year, the business activity will cease. and no more cash flow will be produced. The initial 1,050,000 investment in plant and machinery is to be depreciated over the 7-year life of the project using the straightline method. These assets will have no value after Year 7. Evaluate and discuss the economic viability of this project based on