Shampoo Soap Bar When Zara initially started selling soaps, she had a very small range - all were organic coconut oilbased soaps fragranced with one essential oil-- and each soap bar was sold for $3.00. However now Bubble Oasis want to include more variety which include different types of ingredients and essential oils. They know that in this case some soaps will cost more than the others because of the ingredients they use. For example, Tea tree oil will cost more than Coconut oil. As Bubble Oasis expanded its product line and in response to the growing demand however Zara and Nathan faced a pricing challenge and would like to have your advice in relation to the new product - Shampoo bars they are planning to introduce. They are keen on seeing whether the plan is feasible or not. They wanted to conduct a comprehensive cost analysis for their latest product, the PureCleanse Bar, a shampoo bar designed to provide an eco-friendly alternative to traditional liquid shampoos. By introducing the PureCleanse Bar, Zara and Nathan aimed to a sustainable and effective hair care solution by offering unique blend of botanical extracts and nourishing oils which synergistically to strengthen hair, promote a balanced scalp, and restore natural vitality while maintaining their commitment to environmental and social responsibility. As management accountant of "Bubble Oasis", you believe it is important to collect as much information as possible to ensure the implementation of the new venture is successful. You have already prepared operating budgets for Earth Fresh Soaps (sales, materials, labour, and production budgets) and are now in the process of undertaking a Cost Volume Profit Analysis (CVP) for Shampoo Soap Bar. They expect that the new shampoo bars could generate a sale of 100 batches of Shampoo bars in the current year. Zara and Nathan have provided the necessary information in Appendix B, which will serve as a starting point. Using the information provided in Appendix B: Show your calculations for calculation related questions. Must show step by step calculations.

 a. How many batches of "PureCleanse bars" and sales ($) they will require in the first year to break even? Explain the meaning of the breakeven you have calculated.

 b. Calculate the amount of profit earned by Bubble Oasis for "PureCleanse shampoo bar "in first year. How many PureCleanse Bars batches ""Bubble Oasis" will require to sell if they wish to earn a before tax profit of $75,000 from the PureCleanse bars. 

c. Discuss the usefulness of Cost Volume profit analysis and use the information to evaluate "Bubble Oasis's performance in relation to the "PureCleanse shampoo bars?