Question 4. Cost volume profit analysis (15 marks) MultiMake Ltd manufactures selfassemble radio kits.Each unit sells for $3. and the business has a relevant range of production between 30 000 and 60' 000 units per year. The budget for the coming year is as follows: Sales (50,000 units) $400,000 Less variable costs Manufactln'ing Direct Material $37. 5'00 Direct Labour $5 7. 500 Variable Overhead $5 0.000 Total Lianufacturing $195,000 Marketing Advertising salaries $105,000 Total Variable cost $300,000 Contribution Margin Less Fixed costs Manufacturing 32 45,000 Marketing $ 27,000 Total Fixed Cost $ 72,000 Prot before tax W Required: a} The companyr wishes to know what sales are required to achieve a prot before tax of $45000? (5 Marks) b) The rm also wants to know what sales are necessaryr to provide a prot of 10% on sales ? {5 Marks} c} Explain and describe the meaning of outcome a and b. {5 Links)