DISTINCTION PRODUCER manufactures accounting books. Business has determined the following sales and production expense (applicable for 2017 & 2018): Selling price per unit RM400 Variable cost per unit RM200 Annual fixed cost RM100,000 Net profit for 2017 RM400,000 Currently, the business is planning for its 2018 activity and the management intends to repeat its outstanding performance in 2017. However, due to certain economics factors, the activity of the business will be affected. Hence, it was clear that the net profit for 2017 would not be reached unless some actions were taken. A management committee presented the following alternatives: i. Alternative A: to reduce the selling price by RM40 per unit. It is forecasted that at this significant reduced price will result in 2,700 units of books to be sold during the year. The total fixed cost and variable cost per unit will remain as budgeted. ii. Alternative B: to reduce the variable cost by RM10. The selling price will also be reduced by RM30 which will result in total sales of 2,200 units iii. Alternative C: reduce the annual fixed cost by RM10,000 and lower the selling price by 5%. Variable cost per unit is unchanged. Sales of 2,300 units are expected for the year. Required: a. Calculate sales in revenue to be made in order to break-even in 2018 (2 marks) b.Calculate the number units sold to achieve the net profit as 2017 (2 marks) c. The business is considering a few alternatives for 2018. i. Calculate the net profit for each of the alternatives above. (7.5 marks) ii. Determine which alternative they should consider achieving closest to the net profit achieved in 2017. Justify the alternative considered. (2.5 marks) d. Refer to the original information (i.e. ignore part (C) data). Assume now that there is a tax rate of 20%. How many units must Distinction Producer must sell in order to achieve a target profit after tax of $400,000? (3 marks) e. Explain 'behavioral congruence' and responsibility accounting' with an illustration. How are these 2 concepts related