how do i do question A ?

Willcrest Furniture Company began as a specialist manufacturer of chairs but has recently expanded its product line to include tables. In the yearly Income Statement below, the chairs sold in the ratio 2:1 to tables, i.e. 8,000 chairs to 4,000 tables. Prior to the addition 9 CVP and relevant costs not Total of tables, the firm's accountant used to calculate a break-even volume. Now, she is so sure it is possible to do such a calculation with more than one product line. The company's Income Statement for the year is: Chairs Tables Per unit Total Per unit $ $ $ $ Sales 350 2,800,000 250 1,000,000 Less costs Materials 116 928,000 70 280,000 Direct labour 448,000 40 160,000 Manufacturing overheads Variable 28 224,000 80,000 Fixed (allocated) 112 896,000 320,000 Fixed selling and admin 14 112,000 10 Total cost 40,000 326 2,608,000 220 880,000 Net profit/loss 24 192,000 30 120,000 56 20 80 Relevant costs for d Required a i If the firm made only chairs, what would be the break-even point in units and dollars? ii If the firm made only tables, what would be the break-even point in units and dollars? iii Is it possible to calculate a break-even point if the firm makes a combination of tables and chairs? Demonstrate the calculation that could be done, making explicit the implied assumption. iv What would be the margin of safety percentage? b The firm is thinking of adding desks to its product line because it has unused capacity in its expanded factory. One of its customers has offered to buy four times as many desks as it does tables. At present it buys 250 tables a year. The production department personnel together with the accountants have calculated that the direct costs for a desk would be $80 for direct labour and $180 for direct material. Variable overheads would be incurred at the usual rate as in the case for making tables. The project would employ some existing machinery, costing $100,000, which has no other alternative use. Some new equipment would be required which would result in an additional fixed overhead cost of $80,000. With this new equipment, up to 1,500 desks could be produced. No additional selling and administration costs would be incurred for the If the customer offered a contract price of $380 per desk, would you advise the firm to accept this order? Give reasons and supporting calculations. special order