b) Charity Mammara Ltd produces and sells a certain type of cereal that has the following cost structure. GH per unit Direct material 25 38 14 15 Direct wages Variable overhead Fixed production overhead A mark up of 25% is made on the product and the fixed production overhead absorption rate is based on normal capacity of 2,000 units per month. Budgeted sales for the month are 2,500 units. Required: i) ii) How many units of the product must be sold per annum to break-even? Management is concern about a recent market survey which indicated that sales for the product may be lower than projected. You are required to explain to management by what percentage can sales fall without the company making a loss? (2 marks) (3 marks) iii) iv) If the fixed costs increased by 10% and the company wishes to make a profit of GHS22,000 per annum. What annual output is needed to achieve the desired profit assuming that the selling price remains the same? (3 marks) Assuming the company can sell the projected output of 2,500 units per annum. What selling price per unit would achieve the profit target of GH22,000. Assume the increased fixed cost. (3marks) (Total: 15 marks)