Question 1 For a given period, FELLOW GHANANIANS decides to produce 50 units of a specialized product PREKESE. These products are expected to be compete with those from other sources. The cost accountant is optimistic that these units can be produced based on previous records. Using the accounts classification method, the cost accountant estimates that GHC80 is attributable to costs; which costs will not change irrespective of changes in the units produced. Consequently, management is informed that, the total cost of producing the planned 50 units is GHC 180 only. Planned sales for the period are expected to be four times in total of the cost associated with changes in units produced. Management is desirous of meeting its target in order to continue its operations. Required: Given the information above a. Compute the break-even sales in units and in cedi value b. Determine the contribution on per unit basis and in total c. What will be the contribution to sales ratio? Explain this ratio. d. Management expects a profit after tax of GHC 1,500. How many units should be produced in order to achieve this profit if tax rate is 40%? e. What is the amount of tax payable by government assuming it produces the units in (d) above? f. Does the expectation of management to achieve after tax profit of GHC 1,500 alter the contribution? Provide a brief narration g. Assuming management puts break-even sales at 200 units. Do you think the product will be able to compete in the market? Support your answer and/or explanation with computations. Contribution to sales ratio is considered useful for managerial analysis. Using this ratio: h. Compute the total contribution which should be expected by management i. What will be the break-even sales in cedis? How different is this amount from that in (a)? j. Compute the profit margin based on your answer in (g) above.