Question 1 CTV Pte Ltd (CTV) manufactures televisions. It is suffering from the effects of increased global competition for its main product, a 30-inch TV, sold in discount stores across Asia The following table shows the results of CTV's operations in 2015 Sales (150,000 units $84) Less: Variable cost (150,000 @S63) Contribution margin Less: Fixed costs Operating profit (Loss) $12,600,000 9,450,000 $3,150000 3,552,000 ($402,000) Required: Compute the contribution margin ratio for CTV. What is CTV's break-even (6 marks) Calculate the required sales, in units and in dollars, to generate an after tax profit (6 marks) (a) volume and sales revenue? (b) of $45,000 if the tax rate is 40% The marketing vice president believes that a 10% reduction in selling price and an additional $80,000 in advertising can increase annual sales by 25%. If the marketing vice president is right, what would be the effect on the company's (c) operating profit or loss? (8 marks) (d) Ignore part (c). The vice president of manufacturing suggested switching to a new component supplier who is able to reduce variable cost by $5 per unit. However, this change will also require modifications to manufacturing equipment that will cost $25,000 per year. Evaluate if CTV should adopt this suggestion. Explain (8 marks) (e) List two (2) qualitative issues CTV should consider when deciding whether to switch to the new component supplier, as suggested by the vice president of manufacturing (6 marks)