please answer all questions :

The annual profit budget of Murray Ltd. is as follows:

$

Sales (50,000 units @ $4)

200,000

Variable costs:

Manufacturing

30,000

Selling and administrative

10,000

Fixed costs:

Manufacturing

25,000

Selling and administrative

15,000

80,000

Net Income

120,000

Required:

Answer each part below independently of all other parts.

a) What is the company's break-even point in units and in dollars? (5 marks)

b) The company proposes to buy equipment to replace workers. If this is done, fixed costs will

increase by $5,000 and variable costs will remain constant when sales are $200,000. What

is the new break-even point in units? (3 marks)

c) Assuming that fixed costs are increased by $10,000 and variable costs remain constant at

the $200,000 sales level, how much sales (in units) must be made to realize a $30,000

profit? (4 marks)

d) The corporate tax rate is 40%. If Murray Ltd. is desirous of realizing an after tax profit of

$100,000, how much units would the company have to sell? (use the original information

given ) (5 marks)

e) The sales manager proposes an increase in unit sales price of 10 percent, with an expected

drop of 20 percent in sales volume. If this step is taken, what would be the expected profit? Would you approve this plan? What would be the new break-even point in units? (8 marks)