The CPU, Vincent Low, approaches you and asks you for your help. He provides you with a list of costs for an average month of chocolate bar production and you have been asked to examine the nancial feasibility of the operation. Variable costs are calculated at an assumption of selling 351M) chocolate bars per month. m _ _ .55.] R... m _ mm 1m Heating and lighting includes a 25 percent fixed charge. The product is to be sold at 111.112 per bar. You are required to: a} h} c} d} 3} Calculate the break-even point for this product. {Ill marks} Calculate the margin of safety as a percentage of sales units. (2 marks} What is the prot I I: loss} at a sales 1volume of SilJlDD units. (2 marks} Accurately draw a graph showing the following: i. Fixed costs ii. Total 1variable costs iii. Total costs it. Total revenue y. Break-earn point yi. Margin of safety (15 marks} In this company's business proposal they have stated their aim is to achieve a yearly RDCE of 5%, their initial capital was Rhdl. How many units of their product need to be sold monthly to achieve this RGCE target'?I What does your answer tell you?I (3 marks} Based on your answers for a} and b}, how does the break-eyen point and the MOS change if the company decides to increase their price by 15%,r which in turn would lead to a reduction in units sold by one third. (4 marks} Describe the limitations of the Break-Even method and elaborate why it might be difcult for a company with three products to apply this approach (3 marks}