Question 4: Cost Volume and Profit (CVP) analysis Veritas Software is a leading Australian based accounting software manufacturer. It develops software packages for accounting firms located in Australia and overseas. Veritas is planning to release an upgraded version of their software soon. The company divides its clients into two groups: Local firms (those firms that operate in Australia) and Global firms (those firms that operate in overseas). Although the same physical product is provided to each client group, significant differences exist in selling prices and variable marketing costs: Local firms Global firms Selling price (per unit) $195 $115 Variable costs (per unit) Manufacturing $15 $15 Marketing $50 $20 The fixed costs of Veritas Software are $16,500,000. The planned sales mix for the upgraded software in units is 60% Local firms and 40% Global firms. Required a) What is the break-even point in units for Veritas Software's upgraded software if the planned sales mix is attained? b) If the planned sales mix is attained, what will be the operating income when 180,000 units are sold? c) If Veritas Software wants to generate operating income of 5,500,000, how many units do they need to sell to Local and Global firms each? Assume that the planned sales mix is attained