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Deport Strange Aussies Limited is presently preparing planning for the production in the forthcoming year The company can manufacture four products. However, due to space

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Deport Strange Aussies Limited is presently preparing planning for the production in the forthcoming year The company can manufacture four products. However, due to space limitations for its machinery the company can only produce one type of product each year. Below is the estimated selling price and costs for each produce for the forthcoming year. Tyres $383.00 $29.00 $45.00 Product Chairs Surfboards $182.00 S541.00 $58.00 $120.00 $35.00 $181.00 Windows $124.00 $19.00 $18.00 Activity Selling Price (per unit) Direct Material (per unit) Direct Labout (per unit) Variable Manufacturing Overhead (per unit) Variable Selling Expense (per unit) Fixed Manufacturing Overhead (total) Fixed Administrative Overhead (total) Fixed Marketing Overhead(total) $71.00 $31.00 $71.00 $35.00 $12.00 $19.00 $36.00 $21.00 $11,580,000.00 $18,590,000.00 $4,100,000.00 $14,740,000.00 $32,869,000.00 $25,050,000.00 $18,900,000.00 $6,150,000.00 $21,450,000.00 $8,250,000.00 $31,250,000.00 $38,215,000.00 Required: Assume the management decides to produce chairs in the coming year. The management estimate that if the production focuses on chairs then in the coming year they will produce and sell 650,000 units. 1. Compute the contribution margin per dollar for the chall 2. Compute the contribution margin per unit for the chairs 3. Compute the contribution margin ratio for the chairs. 4. Determine the number of units to be sold at the breakeven point for the chairs. 5. Determine the revenue at the breakeven point for the chairs. 6. Assume the company wishes to achieve a net profit of $25,000,000. Determine the number of units to be sold to achieve that level of net profit for the chairs 7. Assume the company wishes to achieve a net profit of 55,000,000. Determine the revenue to be achieved that gives that level of net profit for the chairs. rige

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