O 1) A manufacturer is considering a new production. The fixed cost is estimated to be $180,000. Variable production and material costs are estimated to be $15 per unit. Den over this product is estimated to be 8000 units. The company plans to sell to the local shops for $40 cach. (15 marks) (15 min) List of formulas: Prolit Revenue - Total cost Revenue Selling price volum Total cost - Fixed cost cost per item volume Break even volume = (Fred cost)/(Unit contribution a) What is the breakeven point? b) What profit or loss can be anticipated with a demand of 8000 units? c) With a demand of 8000 units, what is the price per product that the company must charge to earn $100,000 profit? d) If the marketing department manager believes that the demand can be increased by 15% with the price of $35 per product, what action would you recommend? (i.e. Should they decrease the price to 35?)