Question 1. Sound Ltd manufactures a line of stereos, namely: Blast, Twilight and Rock. The company has experienced considerable variations in sales volumes and variable costs over the last year and the Management Accountant Mr Max believes the forecast should be carefully evaluated from a cost volume profit (CVP) perspective. The forecasted figures for 2016 follow: Unit sales Unit selling price Variable selling cost per unit Plastic tubes Direct Skilled labour per unit Blast 50,000 $84 $30 $19 See below Twilight 50,000 $108 $30 $13 See below Rock 100,000 $144 $65 $18 See below Direct skilled labour costs are $5.00 per unit for units 50,000 and below and $10.00 per unit for 100,000 units and above. For 2016 fixed manufacturing overhead is budgeted at $5,000,000 Required: a. Calculate the weighted average contribution margin (WACM) for all three products. b. Assuming the sales mix remains as budgeted, determine how many units of each product the company must sell to break even in 2016 c. Determine Sound Ltd.'s budgeted net income after tax for 2016 assuming the company's tax rate is 40%. d. Calculate the company's weighted average contribution margin ratio. e. After preparing the original estimates, management determined that the company has been able to reduce total fixed cost to $4,800,000 by eliminating certain unnecessary expenditures. Given these circumstances, calculate how many units of each product the company has to sell in order to break even