Q1. [30 marks) a. XYZ produces two types of water filters. One attaches to the faucet and cleans all water that passes through the faucet. The other is a pitcher-cum-filter that only purifies water meant for drinking. The following data is available: The unit that attaches to the faucet is sold for $90 and has variable costs of $25. The pitcher-cum-filter sells for $110 and has variable costs of $20. XYZ sells two faucet models for every three pitchers sold. Fixed costs equal $1,200,000. As a cost analyst, help XYZ in the followings: 1. What is the breakeven point in unit sales and dollars for each type of filter at the current sales mix? (6 marks) 2. XYZ is considering buying new production equipment. The new equipment will increase fixed cost by $208,000 per year and will decrease the variable cost of the faucet and the pitcher units by $5 and $10, respectively. Assuming the same sales mix, how many of each type of filter does XYZ need to sell to break even? (8 marks) 3. Assuming the same sales mix, at what total sales level would XYZ be indifferent between using the old equipment and buying the new production equipment? If total sales are expected to be 24,000 units, should XYZ buy the new production equipment? 4. Is the increase in the income tax rate affect the breakeven point? Why? (Do not solve) (8 marks) (4 marks) 5. list the assumptions underlying your analysis in all the above scenarios. (4 marks)