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Section 4: CostVolumcProt Analysis Elysium sells two types of sunglasses: Superstar and Biker- Information about the expected sales volume. selling price and variable cost per
Section 4: CostVolumcProt Analysis Elysium sells two types of sunglasses: Superstar and Biker- Information about the expected sales volume. selling price and variable cost per unit of the products are as follows: Budgeted mamas Sam-mm mawmm The expected monthly fixed cost is $16,0D0. Assume that Elysium pays income taxes of 28% and that fused costs remain constant regardless of the number of product lines. Required: 1. Assume that only Superstar is sold. Calculate the following: (a) Breakeven in dollars. (b) Target sales volume in units: assuming a target profit of $32,313:] after tax- (c) Margin of safety as a percentage. (d) If Elysium\"s direct material cost increase by 6%; how many units will the company have to sell to reach its breakeven point?' 2. Assume that both products are sold (Superstar and Biker). Calculate the total number of Superstar that needs to be sold to break-et-'en
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