Question 2 6% Perth Limited makes and sells only one product, an umbrella. The selling price is C15.00 per umbrella. Variable expenses are Gtherperent of sales price of C15.00 and fixed expenses are 660,000 for the year. Management has decided to decrease the selling price to C12.00 in hopes of increasing its volume of sales. Required: (a) What is the contribution margin ratio when the selling price is reduced to C12 per unit? (4 Marks) (b) What is the monetary sales level required to break even at the old price of C15.00? (4 Marks) (c) Estimate the sales value in Euro level is needed to obtain a before-tax profit of C60,000 when the selling price is C12.00 per unit? (6 Marks) (d) Calculate the new break-even point in units for Perth Limited when the selling price is C12.00. (6 Marks) (e) Cost-Volume-Profit analysis is subject to a number of assumptions. List five assumptions that are necessary to make cost-volume-profit analysis feasible. (10 Marks)