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Question 1 The Ebby Co. manufactures a single product, NX081. Data for the product are as follows: A+ (per unit) Selling price 200 Variable material

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Question 1 The Ebby Co. manufactures a single product, NX081. Data for the product are as follows: A+ (per unit) Selling price 200 Variable material cost 40 Variable labour cost 30 Variable production overheads 20 Total fixed cost is $11.980,000 Required: a) Number of units to break-even b) Sales at break-even point c) Contribution to sales ratio d) What number of units will need to be sold to achieve a profit of at least A4499,400? e) What level of sales will achieve a profit of at least 46499,400 ) If the tax rate is 25%, how many units will need to be sold to make a profit after tax of A600,000 per annum g) To boost sales, the company proposes a sales commission of 5% of selling price. If the selling price cannot be increased what will be the new number of units required to maintain a profit of A4600.000 per annum? (ignore tax). [40 points)

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