Summer plc is a manufacturing company, founded in 2005, that only produces beach umbrellas and operates in a very competitive sector. In the 2021 annual report, the Profit & Loss account suggests 1.500.000 revenues, obtained producing 50.000 units.

Based on this information:

1) Identify the main categories of costs incurred by this company providing their classification;

2) Try to list the costs incurred by the company in 2021 and also provide their amounts;

3) According to your hypotheses on point 2) calculate the break-even point of this company (in units and in revenues);

4) Provide suggestions on how the company can improve its break-even point in the short and long-term;

5) As managerial accountant of the company, provide support on the decision to decrease the unit selling price by 5% next year. Explain if this decision is convenient for the company and which elements managers should consider.