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Part B: [Total Value: 6 marks XYZ Inc. sells only 1 product....donuts! Each donut sells for $2.25. The variable costs per unit is $1.50, which

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Part B: [Total Value: 6 marks XYZ Inc. sells only 1 product....donuts! Each donut sells for $2.25. The variable costs per unit is $1.50, which includes variable overhead costs, The Fixed costs are as follows: Fixed overhead: $700 Fixed selling costs: $100 Fixed administrative costs: $300 Required: 1. How many donuts must XYZ sell in order to break-even? [2 marks] 21 Page 2. If XYZ has a Target Profit of $1000.00, how many donuts does XUZ need to sell? Ignore income tax. 12 marks 3. What is the monthly Net Income (Loss) if XYZ sells 500 donuts? Ignore income tax. 12 marks

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