The following information relates to the budgeted cost and sales for the year ended 31 December 2018 by ABC company

Selling price per unit	$11.60
Variable production cost per unit	$3.40
Sales Commission	5% of selling price
Fixed production cost	$430,500
Fixed selling and administration cost	$198,150
Sales	90,000 units

Required:

Calculate the following:

(a) Contribution per unit

(b) The break-even point in units and value.

(c) The profit or loss arising if the units sold are:

1. 80,000 units

2. 110,000 units

(d ) The number of units to be sold if the target profit is $25,000.

(e) The new break-even point if the management decide to boost sales by increasing the advertising expenses by $15,000.

(f) The new target profit if sales commission is calculated based on 6% of selling price and the company wants to an output level of 100,000 units.