Dewqas Limited has prepared the following prot analysis, for the current nancial year: Sales {150,000 units} 5 1,505,000 Variable expenses 5 597,500 Contribution margin 5 507,500 Fixed expenses 5 222,000 Prot 5 535,500 Management are considering a range of options to improve protability. These options include reducing the selling price by $0.15 per unit and updating machinery and production methods. If machinery and production methods are updated, xed expenses will increase by $52,000 per year and variable expenses will decrease by $1.10 per unit. However, management are concerned at the increased risk and changes to the level of operating gearing. If the selling price is reduced by $0.15 per unit, the number of units sold is expected to increase by 5%. There is no reason why management cannot reduce the selling price and update machinery and production at the same time. Required: 1] Calculate the contribution margin per unit, total xed costs, the breakeven point in units, and total expected {15 marks] prot for all of the possible choices that management can make. 2] Complete the following table in section 2, part A of the template, showing expected prot at various sales {10 marks] levels for [i] the current state of operations {no changes] and {ii} the case where machinery and production methods are updated- Show all amounm in whole dollars {do not include cents]. W.- 50,000 100.000 150,000 200,000 Expected prot {no change] Expected prot {machinery 81 production methods updated] 3] Based on your results for part 2 produce a prot-volume chart. Show both cases on the same set of axes. {9 marks] 4] Based on your results to parts 1, 2 and 3, write a brief recommendation to management advising on the {10 marks] recommended course of action