Kindly solve the following questions for me.

Question 1.

Assume that ABC ltd produces two products ,product A and B and the following budget has been prepared.

A B C

Sales in units 120,000 40,000 160,000

sh sh sh

Sales @5/=,10/= 600,000 400,000 1,000,000.

Variable cost @4/-,3/- 480,000 120,000 400,000

Total fixed cost 300,000

Profit 100,000.

Required

a} Compute the break-even point in total and for each of the products.

b} The company proposes to change the sales mix in units to 1:1 for products A and B.

Advise the Co. on whether this change is desirable

Question2.

Assume that the management accountant of a company that makes and sells product X has made the following estimate:

Selling price sh.1 Unit variable cost.

sales demand condition

Condition unit probability cost sh

Worst possible 45,000 0.3 Best possible 3.5 0.30

Most likely 50,000 0.6 most likely 4.0 0.55

Best possible 55,000 0.1 worst possible 5.5 0.15

Fixed cost =sh.240,000.

Required

a} Compute the expected profit.

b}Compute the probability that the company will fail to break even.

c}If the company has a profit target of sh.60,000n.what is the probability that the company will not achieve this target.