Olive Plantations Pty Ltd currently produces two products: candle and soap. It plans to introduce detergents to their product range in 2023. The following information is related to its planned activities: Candles Soaps Detergents Sales mix (250,000 units) Selling Price Variable cost/ unit Total fixed costs = $402,800 Required: (a) Calculate the break-even point in total units and units per product based on the 2023 data. (b) Calculate the profit/loss (before tax) that would be achieved in 2023 based on the above data. (c) Management is concerned about increasing competition for some of its products, and wants to increase its sales of Soaps relative to Detergents. The initiative would increase annual fixed costs by $50,000 and alter the sales mix to 30% for Candles, 30% for Soaps and 40% for Detergents. Assume the total units sold are held constant at 250,000 units, based on the available data, would you recommend the initiative? 75,000 50,000 $28 $18 $45 $27 125,000 $20 $12

Olive Plantations Pty Ltd currently produces two products: candle and soap. It plans to introduce detergents to their product range in 2O23. The following information is related to its planned activities: Total fixed costs =$402,800 Required: (a) Calculate the break-even point in total units and units per product based on the 2023 data. (b) Calculate the profit/loss (before tax) that would be achieved in 2023 based on the above data. (c) Management is concerned about increasing competition for some of its products, and wants to increase its sales of Soaps relative to Detergents. The initiative would increase annual fixed costs by 550,000 and alter the sales mix to 30% for Candles, 30\% for Soaps and 40% for Detergents. Assume the total units sold are held constant at 250,000 units, based on the available data, would you recommend he initiative