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QUESTION 3 15 Marks PARTA Django Ltd is considering renting a stand at the local markets. Django Ltd plans to sell bottles of green tea for $3.50 each. They can purchase these bottles for $2.10 each and can return all unsold items to their supplier for a full refund. Rent for the stand will cost $700 a week Required a) Calculate the break-even sales in units. b) Suppose the market administration adds a once only compulsory fixed advertising charge of $350. Using the contribution margin approach, what is the new break-even point in units sold? c) Django Ltd desire a net profit of $490 a week. Assuming a sale price of $3.50, variable expense of $2.10 per unit and fixed expenses of $700, how many bottles must be sold to earn a profit of $490? d) Identify three assumptions underlying the above cost-volume-profit analysis. Space for workings: b) c) d) Assumptions underlying the above analysis