Question 2 A firm makes wireless routers priced at 300 of which product variable costs are onethird of Sales revenues, in a small workshop with annual overheads of 111,000. (a) Examine the workshop operating profitability: (i) Prepare a Contribution Statement for workshop production of 500 units; 1,000 units and 1,500 units using the format of Table B2. (ii) Calculate the Break-even Point (using Overheads / Product Contribution per unit) for the workshop and the Target Sales for a required Profit of 150,000 - show your workings. (b) If the cost of parts/materials (from suppliers) increase such that the Product Contribution is reduced to half of Sales revenues: re-calculate the Break-even point and the Target Sales for the workshop and comment on the changes