Taxi Cabinets Inc. started operations in 1984. It specialises in the making of cabinets for televisions. The company makes two types of cabinets, the Standard and the Deluxe. In the first five months of 2001 sales were $600,000 and budgeted sales for the year are $1,605,000.

The manager of Taxi Cabinets has become concerned because there is enormous competition in the television cabinet industry. You have been provided with the following information to enable you to provide answers for the manager's questions.

Model Unit Price Unit Variable Cost Direct Fixed Costs

Deluxe $3,400 $2,686 $95,000

Standard $1,600 $1,328.50 $95,000

Complete the following activities:

Calculate the number of Deluxe and Standard cabinets that must be sold in 2001 for the company to break even on each model.

Calculate the total revenue that must be generated in 2001 for the company to break even.

Taxi Cabinets is investigating a proposal to purchase machines that will make the doors, drawers and frames for the cabinets. If the machines are purchased, the variable cost for each type of cabinet will decrease by 9%, but the direct fixed costs will increase by $20,000 for Deluxe and $10,000 for Standard. Calculate the revised break even levels.

Calculate the pre tax profit, for 2001, if the company had decided to purchase the machines (as in 3. above) at the beginning of 2001 and sales are expected to be 10% above breakeven.

In addition to the calculation of the figures to indicate whether or not the machines should be purchased there are a number of non-financial factors that need to be considered. Name two of the relevant non-financial factors that the manager needs to consider and discuss how these may impact on the managers decision.

( could you please show me the answer step by step )