CVP Question Three: Barry Allen runs a small family company called The Flash Plc. The company manufactures toy action figures, the most popular of which is the Reverse Bolt, a yellow variant of their original Red Lightning figure. The yearly demand for the Reverse Bolt figure is 50,000 action figures. Unfortunately, Barry does not have any accounting background so he asks you for help. He provided you with the following information (all based on yearly demand): that genera ew client w Plastic Metal (aluminium) 80,000 30,000 Paint (yellow, red) 20,000 Electricity 50,000 Rates 15,000 Administration costs 45,000 Depreciation 10,000 Advertising 30,000 120,000 Direct labour 10. The electricity is 20% fixed and 80% variable. The figure is sold at a standard price of Required: a) Calculate the number of Reverse Bolt action figures to be produced and sold in order to break even. (8 Marks) b) Calculate the margin of safety (MOS) as a percentage and explain the meaning of margin of safety. c) Calculate the profit at the current level of sales. (2 marks) (2 marks) d) Calculate the amount of units that Barry Allen needs to sell to achieve a profit of 175,000. Comment on the feasibility of this target, and suggest what Barry needs to do regarding current demand