Kindly please assist

Question 1 (18 marks) The management of Mega Toy Limited is considering making a new product, but it is unsure about how to price the product and its variable cost. The marketing department believes that the company can sell the product for N$550 per unit but it feels that if the initial market response is weak, the price may have to be 30% lower in order to be competitive with existing products. Management's best estimate of the new products costs are fixed costs of N\$26 million and a variable cost of N\$280 per unit. Management is also concerned about fluctuations in the variable cost per unit due to volatile raw material and labour costs. Although management expects a variable cost of N\$280 per unit, it could be as much as 8% above that value. Management expects to sell about 1500000 units of the new product per year. Required (a) Calculate the new product's break-even volume, assuming management's initial estimates are accurate. ( 6 marks) (b) In the worst case scenario, how many units will the company need to sell to break even? (8 marks) (c) If each of the possible price/variable cost combinations is equally probable, what is the company's expected break-even point for the new product? ( 2 marks) (d) Based on your finding in (c) above, should management go ahead with the proposed new product? Explain why. (2 marks)