Question 2 Semanhyia Company Limited manufactures and sells a single product at a selling price of GH$90 per unit. The Company is currently selling 2,000 units per month. Variable expense shown below: is GH$60 per unit and fixed expenses total GH$30,000 per month. Data for the company is Per Unit (GHe) Percent of Sales Selling price 90 100% Variable expense 60 2 Contribution margin 30 1-3 Required a) What is the Company's monthly break-even point in units and in cedis? (3 marks) b) How many units would have to be sold each month to earn a target income of GHe 15,000? Verify your answer by preparing a contribution format income statement at the target sales level. (3 marks). c) Semanhyiacompany's marketing manager argues that a GHc5,000 increase in the monthly advertising budget, which is part of the fixed expenses, would increase monthly sales by GH $9,000. Should the advertising budget be increased? Prepare a contribution format income statement to support your answer. (3 marks) d) In an effort to boost sales next month, Semanhyiacompany's management is considering the following changes: selling price would increase by 20%, variable expenses would increase by GHe 15.00 per unit, fixed expenses would double and sales volume in units would decrease by 10%. Should the changes be made? Justify your answer. (3.5 marks)