Question 2. Another New Product - Shampoo Soap Bar When Zara initially started selling soaps, she had a very small range - all were organic coconut oil- based soaps fragranced with one essential oil--and each soap bar was sold for $3.00. However now Bubble Oasis want to include more variety which include different types of ingredients and essential oils. They know that in this case some soaps will cost more than the others because of the ingredients they use. For example, Tea tree oil will cost more than Coconut oil. As Bubble Oasis expanded its product line and in response to the growing demand however Zara and Nathan faced a pricing challenge and would like to have your advice in relation to the new product-Shampoo bars they are planning to introduce. They are keen on seeing whether the plan is feasible or not. They wanted to conduct a comprehensive cost analysis for their latest product, the PureCleanse Bar, a shampoo bar designed to provide an eco-friendly alternative to traditional liquid shampoos. By introducing the PureCleanse Bar, Zara and Nathan aimed to a sustainable and effective hair care solution by offering unique blend of botanical extracts and nourishing oils which synergistically to strengthen hair, promote a balanced scalp, and restore natural vitality while maintaining their commitment to environmental and social responsibility. As management accountant of "Bubble Oasis", you believe it is important to collect as much information as possible to ensure the implementation of the new venture is successful. You have already prepared operating budgets for Earth Fresh Soaps (sales, materials, labour, and production budgets) and are now in the process of undertaking a Cost Volume Profit Analysis (CVP) for Shampoo Soap Bar. They expect that the new shampoo bars could generate a sale of 100 batches of Shampoo bars in the current year. Zara and Nathan have provided the necessary information in Appendix B, which will serve as a starting point. Using the information provided in Appendix B: Show your calculations for calculation related questions. Must show step by step calculations. a. How many batches of "PureCleanse bars" and sales ($) they will require in the first year to break even? Explain the meaning of the breakeven you have calculated. Appendix B Cost volume profit information Ingredients@ for one batch of PureCleanse shampoo bars (Each batch makes 100 bars of shampoo) Selling price of PureCleanse Bar: $10.60 each/per bar. Lye: 1 kg of Lye (substance which is used to make soap) is used for one batch of shampoo bar. Lye is purchased for $30 per kg. Organic olive oil is available for purchase at a cost of $200 for every 10 kilograms. Each batch requires 10 kilogram of olive oil. Organic Shea butter: For each batch of soap 1 kg of organic butter is required. Shea butter costs $10.00 per kilograms. . Labour requirements per 100 bars: 2 hour @ $35 per hour Insurance - Bubble Oasis pays $5000 insurance per annum. Packaging costs: $100 per batch. Other essential oil: Lavender essential oil is used. 500 mls of essential oil required per batch. A litre of essential oil cost $100. Factory rent: $1500 per month. Additional equipment such as goggles, soap cutters, aprons, blenders, Soap making burner and storage containers worth $4600 was acquired to facilitate the