Pharmaceuticals has developed the following data for the 20,000 units of new medicines they hope to produce and sell in the following month:

Direct materials $100,000

Direct labour $50,000

Variable overhead $80,000

Fixed overhead $30,000

Variable selling & admin expenses $48,000

Fixed selling & admin expenses $32,000

Required:

1. At sales price of $38.00 per unit, how many units would Ganges have to sell in order to break-even?

2. At a sales price of $43.00per unit, how many units would Ganges have to sell in order to produce a profit of $20,000?

3. If 16,000 units were sold, what price would Ganges have to charge in order to produce a profit of $42,000

4. Provide one example of management decisions that benefit from cost-volume-analysis (CVP)