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Question 6 ABC and XYZ Ltd grow and produce organic tea bags in the southern part of India which has been experiencing drought for the

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Question 6 ABC and XYZ Ltd grow and produce organic tea bags in the southern part of India which has been experiencing drought for the past few years. Production of tea leaves requires extensive use of water and energy. The tea bags are sold in 1kg boxes. Below is the date for the two organisations: Sales Price (per kg) Variable Manufacturing cost per unit Variable selling cost per unit Fixed Cost (overheads 68% and selling cost 32%) ABC Ltd $ 120 $40 $30 $692,000 XYZ Ltd $140 $30 $25 $747,000 Required: a. Calculate break-even point in both dollars and units. Round to the nearest whole unit or dollars. [5 marks] b. Calculate the number of units ABC and XYX must sell to earn a profit of $300,000 for each. Round to the nearest whole unit. (4 marks] C. List three (3) reasons why ABC and XYZ may have different manufacturing costs despite being in the same industry. [2 marks] d. Explain three potential social and environmental impacts of these two organisations? [3 marks]

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