management accountingplease do it solution in detail and correctlythank you

QUESTION 3 (18 MARKS) Smarty Ltd manufactures DIY study desk which sells at S120 each. The product has a unit variable cost of $80 and fixed expenses are $400,000 per annum. Smarty is currently selling at its full production capacity of 16,000 study desks per annum, which Smarty's directors believe is the optimum price-volume relationship for the product. However, Smarty is considering a proposed plan to sell the study desks under another brand name. While being virtually identical from the manufacturing point of view, the new brand will be differentiated by the packaging and the marketing approaches adopted. The new brand of study desks will be priced at $130 each. Smarty expects to sell 20,000 study desks under this new brand The introduction of the new brand will require the company to expand its production capacity which will increase Smarty's fixed costs to $S40,000 per annum. However, due to economies of operation, it will reduce variable costs by $10 per unit. Required: (a) For both the current sales and the proposed sales under the new brand name, calculate: Break-even point (in units) Margin of safety, MOS (in units) Operating profit (6 marks) (b) If the operating profit under the current sales, as calculated in part (a), is the minimum target, calculate the following for the proposed plan: Sales volume at new selling price of $130 Sales price at predicted sales volume of 20,000 desks (5 marks) 3 (e) Based on your calculations from parts (a) and (b), discuss three (3) reasons why Smarty should or should not implement the proposed plan. (7 marks)