Question 2 Champion Co. Ltd manufactures and sells a specialized product called champion. According to the Management Accountant, the company expects to sell 15,000 units of the product in the current year for GH30 per unit. The variable cost per unit and the total fixed cost for the period are GH18 and GH120,000 respectively. The management of the firm is anxious to increase the company's profit and has asked for analysis of a number of issues. Required: a. Compute Champion's contribution margin ratio and variable cost ratio b. Calculate the company's break-even point in units and in cedis c. What is the company's margin of safety in units, cedis and percentage? d. If the company wants to a target profit of at least GH45,000 next year, how many units of champion should be sold to meet this target profit? e. Calculate the company's degree of operating leverage at the present level of sales. f. Using the degree of operating leverage calculated in (e), by what percentage will net operating income increases if the company's sales increases by 4% in next year. g. If variable cost is increased by GH2 per unit and management expects to increase selling price by 10%, what volume of sales should the company make to achieve a profit of GH120,000