Following question.

Bedok Nest Ltd (BNL) makes luxury suites of furniture. It is considering launching a new range of fumiture, and based on market research has estimated the following: Selling price Units Manufacturing costs per unit are estimated to be: Armchair Sofa Coffee table Material $400 $500 $300 Labour $900 $9?5 Variable overhead $220 $245 Fixed overhead $35 $40 Labour costs are 40% variable, and 60% fixed. Fixed overheads are absorbed on the basis of the number of units produced. All xed costs are incremental to the decision of whether or not to launch the new range If any of the new range is produced then all of the xed costs would be incurred for the whole range. Before committing to production, BNL wants to consider whether or not they are likely to breakeven. Assume products are sold in the constant mix implied by the budgeted volumes. Required: (a) Calculate the weighted average contribution margin ratio to 4 decimal places. (b) Calculate the total break-even revenue, assuming that the products are sold in a constant sales mix. (0) Explaim by showing relevant computations, how your answer to part (to) would change if the constant sales mix assumption is lifted. ((1) Identify TWO key assumptions that must be made in multiproduct break- even analysis and discuss how realistic they are in this case