Question 7: APC Products Co. uses an automated process to manufacture a designer label bag for sale to executives. The product sells for $65.00. The company has established the following costs per unit: Raw material $20.00 - Direct labour $15.00 Variable overhead $4.00 The fixed overhead is $13,000 per annum. The company budgeted to produce 2,000 bags per annum. The company's tax rate is 30% Required: a. Use CVP analysis via the contribution margin to calculate the break-even point in units and dollars. (Hints: You are even point in terms of units through contribution margin per unit and in terms of dollars through contribution margin ratio. required to calculate the break- (7 marks) b. How many units would need to be sold to earn the company a before tax profit of $26,000? (3 marks) Show all the workings in your answers