Carico has the capacity to manufacture 50,000 units annually of its only product. The following information is available: Selling price - ---------------------------------------------------------$26 per unit Variable manufacturing costs ------------------------------------$12 per unit Fixed manufacturing costs--------------------------------------- $180,000 annually Fixed marketing and administrative costs --------------------$120,000 annually Variable marketing and administrative costs ----------------$4 per unit Required: a) Calculate breakeven point in units. (5 marks) b)Compute the quantity of units which need to be sold to earn a target annual profit of $120,000( 5 marks) c) In an attempt to achieve better results in the marketplace, management has been looking at changing the reward system for marketing, distribution and sales personnel. This would result in an increase in variable marketing and administrative costs by $2 per unit, and would reduce fixed marketing and distribution costs by $50,000. i)Calculate the number of units required to breakeven if management implemented the changes(5 marks) ii) Would you suggest that management pursue the changes? Explain(5 marks) d) 'Cost volume profit analysis is more relevant to small enterprises than it is to large enterprises.' Discuss this statement CLEARLY stating whether you agree or disagree and why ? .(5 Marks)