og 1) A manufacturer is considering a new production. The fixed cost is estiriated to be $120,000. Variable production and material costs are estimated to be $12 per unit. Demand over this product is estimated to be 5400 units. The company plans to sell to the local shops for $51 each. (15 marks) List of formulas: (15 min) Profit = Revenue - Total cost Revenue = Selling price. volum Total cost = Fixed cost + cost per Item volume Break even volume = (Fixed cost)) (selling price - cost per item) a) What is the breakeven point? (4 marks) b) With a demand of 5000 units, what is the price per product that the company must charge to earn $100,000 profit? (5 marks) c) If the marketing department manager believes that the demand can be increased by 15% with the price of $42 per product, what action would you recommend? (i.e. Should they decrease the price to 42?) (6 marks)