The manufacturing company produces backpacks and works in a highly competitive industry. The annual income statement suggests 1.5 million $ in revenues, obtained by producing 50,000 units.

1- Determine the major cost categories accumulated by their cost classification

2- Classify and show the amounts for the company's costs incurred.

3-Calculate the break-even point of this company (in units and revenues) based on your hypotheses for question 2.

4- Make suggestions on how the company can improve its break-even point (short and long-term).

5- Being the company's managerial accountant, provide support for the decision on reducing the unit selling price by 5% by the next year. Discuss whether it's beneficial for the company and what factors managers should take into account.