Section B You must answer TWO questions in this section. All questions in this section are of equal weighting. QUESTION 2 Planet Ltd. has provided the following data for the coming period: Estimated sales (output level) 9,000 units Selling price 25 per unit Direct material cost 9 per unit Direct labour cost 10 per unit 32,000 Fixed production overhead Fixed selling and administration overhead 4,000 Required: 1. Calculate the break-even point in sales units (5%) 2. Calculate the margin of safety at current output level and comment on the associated risk for the company. (5%) 3. Calculate the required sales quantity if the company wants to generate a 20,000 profit. (5%) 4. The CEO of the company sets the target profit margin at 25% for the coming year. The company has the following two options for improving profit margin: a. increase the selling price, or b. invest in a 25,000 machine that would reduce the direct labour cost by 80% Compare and comment on the two options and advise the CEO which option would produce the best outcome at current output level. (Maximum word count of this sub- question is 350 words.) (10%) (TOTAL 25%)