In the dynamic landscape of manufacturing and sales, Caribann is a company with the potential to produce $100,000$ units of its sole product annually. Caribann's interplay of costs and production capacity prompts an analysis that will guide it in navigating the balance between revenue generation and cost management. As we examine Caribann's scenario, critical financial data emerges, laying the foundation for strategic decision$-$making.

The following information is available: Selling price $------------------------------------------------------$$$42$ per unit Variable manufacturing costs $-----------------------------------$$$24$ per unit Fixed manufacturing costs$---------------------------------------$$$360,000$ annually Fixed marketing and administrative costs $---------------------$$$240,000$ annually Variable marketing and administrative costs $-----------------$$$4$ per unit Required: $1)$ Calculate breakeven point in units. $(5$ marks$)$

$2)$ Compute the quantity of units which need to be sold to earn a target annual profit of $$120,000(5$ marks$)$

$3)$ In attempting to achieve better results in the marketplace, management has been looking at changing the reward system for marketing, distribution and sales personnel. This would result in an increase in variable marketing and administrative costs by $$2$ per unit, and would reduce fixed marketing and distribution costs by $$100,000$:

a$)$ Calculate the number of units required to breakeven if management implemented the changes $(5$ marks$)$

b$)$ Would you suggest that management pursue the changes? Explain $(5$ marks$)$

$4)$ By reference to the above data:

How can a company effectively use CPV $($Cost$-$Volume$-$Profit$)$ analysis to make strategic decisions about its product pricing and production levels?