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Q 5 ) Royal Industries specializes in producing plastic buckets. Its income statement for the preceding quare, is presented below. Except as noted. the cost

Q5) Royal Industries specializes in producing plastic buckets. Its income statement for the preceding quare, is presented below. Except as noted. the cost-resenue relationship for the coming quarter is expected to follow the same pattem as in the preceding year. Income statement for the preceding quarter ending December 31 is as follows
(a)Determine the BESR and BEP (in units).
(b) Suppose that a plant expansion will add 60,000 to the fixed costs per quarter. How many buckets are nou to be sold to break-even?
(c) At what level of sales revenue will the company be able to maintain its present pre-tax profit position even after expansion.
(d)The company's management feels that it should earn at least 36,000(pre-tax per quarter) on the new investment. Determine the desired sales level to achieve this target.
(Note: Consider each part of the question independently)
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