Question 2 XYZ Lid manufactures a range of fast moving consumer goods. One of their noet popular producte ie a luxury toaster which is produced using a mixture of automated and manual production activities. The directors are concerned that although the product appears to be popular, they do not have any detailed information on how profitable it actually is and if there is any risk of the toasters actually creating losses. Your firm has been engaged to provide some consultancy services on Breakeven Analysis (Coet-Volume-Profit Analysis and make recommendations to help XYZ Ltd meet its target profite. Having analysed the company's records for the past year and in light of knowi current market trends, the following estimates and projections have been established: The unit cost card for a toaster is as follows: Ksh. Materials 10 Labour 10 Variable overheads 4 Fixed overheads 22 40 Fixed costs relating to this product are expected to be Ksh 330,000 per period, and will be absorbed on the budgeted level of production and sales of 15,000 urlits per period. Opening and closing stocks may be ignored. A selling price of Ksh.57 per toaster has been recommended by the Marketing Director to ensure customer demand can be mict. REQUIRED: (a) Prepare a break-ever chart for toaster production clearly showing the following: Fixed costs Total variable costs Tatal revenue Tatal costs Break even point 6 marks) (b Calculate the contribution to sales ratio (to one decimal place and verify the break-even point in both revenue and units already identified in the chart for part (a). (4 marks Io Calculate the budgeted profit for the period. (2 marks) di Calculate the margin of safety for the period, both in units and as a percentare. 12 marks le Estimate the sales levels in both revenue and unite) required to generate a () a target profit of 20%.3 marks [Total: 20 marks]