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The following data have been provided by the finance director of La Pitch which manufactures high-quality tents for the specialist outdoor market. The marketing director

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The following data have been provided by the finance director of La Pitch which manufactures high-quality tents for the specialist outdoor market. The marketing director wants to reduce the price of the tents to 39,99 aed (he considers this to be a psychologically attractive price to consumers) to increase sales volume but there are concerns about reducing unit contribution and covering costs. There are also concerns about exceeding La Pitch's factory capacity. C) Calculate the profit from a sale of 25000 tents. Reminder you need to calculate the total revenue. DETAIL AED Direct Labor Per unit 17 Direct Material per unit 18 Fixed costs 200 000 Current Selling Price 45 Maximum Capacity of the factory 300 000 UNITS D) Identify one advantage and one disadvantage of the marketing directors proposal to reduce the price of the tens to 39.99 AED? (Explain in a full sentence). * (5 Points) A) Define the term break even point B) Calculate the break-even point using the formula. Ensure your answer is in units. Tip-The Variable Cost per unit has two aspects that need to be added first. Direct Labor and Direct Material per unit. 2 Explain what margin of safety is based on break-even point. * (1 Point) 4 Calculate the following letters from A-G. If need be show me your calculations. (7 Points) Quantity Sold Fixed Costs Variable Costs Total Cost Profit /(Loss) Revenue (Price X Quantity) EXAMPLE 100 200 300 400 500 850 850 850 C) 850 250 300 A) D) 400 1100 1150 1600 1900 F) 2400 2200 3400 3050 1300 Profit 1059 Profit B) E) 2750 Profit

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