. Cost volume profit analysis (15 marks) Multi-Make Ltd manufactures self-assemble radio kits.Each unit sells for $8, and the business has a relevant range of production between 30 000 and 60 000 units per year. The budget for the coming year is as follows

Sales (50,000 units) $400,000 Less variable costs Manufacturing Direct Material $87,500 Direct Labour $57,500 Variable Overhead $50,000 Total Manufacturing $195,000 Marketing Advertising salaries $105,000 Total Variable cost $300,000 Contribution Margin Less Fixed costs Manufacturing $ 45,000 Marketing $ 27,000 Total Fixed Cost $ 72,000 Profit before tax $28,00

Required:

a) The company wishes to know what sales are required to achieve a profit before tax of $45,000? (5 Marks) b) The firm also wants to know what sales are necessary to provide a profit of 10% on sales ? (5 Marks) c) Explain and describe the meaning of outcome a and b. (5 Marks