Nestle Cattle, a food company, is now reviewing the current sales position of food A, the details are as follows: Selling price per unit Variable costs per unit Direct materials Direct labor Other direct overheads Fixed overheads Current sales (in unit) Required: With the use of the above information, calculate: (a) i. Total variable costs ii. Contribution per unit (b) i. Breakeven sales in units. ii. Breakeven sales in values (c) i. Margin of safety in units. ii. Margin of sales. (d) If the company's target is to earn at a profit of $320,000, what is i. the units needed to be sold? ii. the sales in value? $ 102 16 18 4 192,000 5,000 (e) In order to boost the sales volume, two alternatives are proposed as follows: Alternatives I: To cut the selling price by $12, then 8% sales increase is predicted. Alternatives II: To launch an advertising campaign at the cost of $120,000, then 12% sales increase is predicted. Decide which alternative is more profitable by comparing the amount of profit from each of the two alternatives. (f) State two of the uses of break-even analysis. (2 marks) (3 marks) (3 marks) (2 marks) (2 marks) (2 marks) (3 marks) (2 marks) (15 marks) (4 marks) (Total: 38 marks)