Question 3. Sandals Limited makes high quality hand-made shoes. Each pair requires 60 of material and will take 2 hours of labour to be made at an hourly rate of 15. The labour is all on such contracts that if they do not work for any reason, they are not paid. The shoes are sold to a number of boutiques for 120 each pair. The fixed costs of operating the workshop for a month amount to 3,250. The company expects to sell 210 pairs per month. a) What is the break-even point both in units and in sales revenue for the business? b) How much is the annual profit? c) Calculate the margin of safety as a percentage of expected level of sales and briefly explain what it means d) Would it be worth to increase the selling price of each pair of shoes by 10 if it leads to a decrease of 20% in demand for the shoes? What will be the new annual profit? e) Outline 4 of the main limitations of break-even analysis