Please answer this question, with workings.

9000 300 Question 3 Lonard Plc is investigating ways of profitability of one of its products. The following forecast is available for the production and sales of 20 000 units for the next financial year. Direct labour 500 Direct material 300 Variable production overheads 150 950 Fixed overheads 1 250 Sales 1 450 The following options are being considered with a view of increasing profitability. Lonard Plc has the capacity to increase production by 5 000 units. a) Invest in new technology which will reduce direct labour cost by $5 per unit and the variable production overhead by$1.50 per unit. Selling price, direct material and quantity would remain unchanged. Fixed overhead would increase by S50 000. b) Increase advertising by $100 000 per year, and introduce a sales commission of S4 per unit. The selling price would be increased by $8 per unit, and sales quantity would increase by 3 000 units. All other costs would remain unchanged. c) Increase the quantity of the product by increasing material and labour costs by 25%. Selling price would increase by $15 per unit. Sales quantity, variable production overheads and fixed overheads would remain unchanged. Required: a) Based on the original forecasts calculate: i) contribution per unit total profit break even point in both units and sales value b) Taking each option independently, calculate the total profit for each option Calculate the margin of safety in units and sales value for option (c) d) Discuss the limitations of using break even analysis for decision making Comment on the implications for the workforce if Lonard Ple undertakes option (C) e)