Davy Company sells two products, a standard and deluxe version of a toy. The budgeted volume, prices, and variable costs per unit for each product appear below. The total fixed cost is $1,300. Please use a spreadsheet to solve the problem.

	Standard	Deluxe
Planned units sold	100	50
Price per unit	$22	$45
Variable cost per unit	$16	$23

1)The planned sales mix of 100 units of Standard and 50 units of Deluxe,

1. What is the breakeven point in units?
2. What is the breakeven point in dollars?
3. Assuming a tax rate of 18.0 percent, how many units of Standard and Deluxe are required to achieve a profit after tax of $8,000?

2)Now assume that Davy produces and sells only Deluxe and that demand for it is a normally distributed random variable with a mean of 490 units and a standard deviation of 100 units. Using a tax rate of 18 percent and a fixed cost of $1300, what is the probability of making a profit after taxes of at least $8,000?

3)What would be at least two assumptions of CVP analysis using this problem as an example. What would the impact be on the answers in Part 1 if either of these assumptions do not hold?