Answer the following question. Detailed steps must be provided

Q1 .Moji Products sells barbeque equipments. One of the companys products, a barbeque grill basket, sells for $ 90 per unit. Variable expenses are $ 53 per basket, and fixed expenses associated with the baskets total $135,000 per month.

Required:

1. Compute the companys break-even point in number of grill baskets and in total sales dollars. (5 mks)

2. If the variable expenses per grill basket increase as a percentage of the selling price, will it result in a higher or a lower break-even point? Why? (Assume that the fixed expenses remain unchanged.) (5 mks)

3. At present, the company is selling 8,000 grill baskets per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of Baskets sold each month. Find the unit contribution in this case. How will the break- even point change. (5 mks)

4. How many grill baskets would have to be sold at the new selling price to yield a minimum net operating income of $144,000 per month? (5mks)