Use the figures in the statement of financial performance of the second accounting period of your case business, prepare a budget for the third period according to the following estimated adjustments.

Sales increases by 30%

Cost of goods sold will be the same % of sales as in the second accounting period

Sales bonuses & Delivery will be the same % of sales as in 2018

Advertising will be 10% of the budgeted sales in 2019

Wages & Other is a semi-variable cost (40% fixed, remainder varies in direct relation to sales)

All other expenses to be same as the actual figures for the second accounting period

The budgeted selling units for the budgeted period are 2,000 units. I need answers for CVP analysis only from a-d.

Case Option Two- Smart Computers The following financial statements are for Smart Computers, a sole trader, for the years ending 31 March 2017, 2018 and 2019. Smart Computers sells Dell computers in Mt Wellington area in Auckland STATEMENT OF COMPREHENSIVE INCOME 2017 2018 2019 Sales (all on credit) Cost of Sales Gross Profit 1,000,000 399,750 600,250 1,500,000 574,000 926,000 2,400,000 774,000 1,626,000 Selling Expenses Advertising Sales Bonuses& Deli Admin. Expenses Insurance Wages &Other Financial Expenses Bad Debts Interest Net Profit 50,000 35,000 100,000 194,000 85,000 56,000156,000 84,000278,000 40,000 55,000 495,000466,950 506,950470,750 510,750 40,000 40,000 144,000 15,000 35,250 48,000 55,050103,050 50,250 30,000 80,250224,250 613,000 160,000 According to the figures in the budgeted income statement for the 3rd accounting period, a Categorise all the expense items in the income statement into variable, fixed and semi-variable expenses. b Calculate total fixed expenses, total variable expenses and variable costs per unit Calculate the breakeven point in units. Show your workings. Round up the breakeven point figures to zero decimal place. c d Calculate the number of units that have to be sold if the business wishes to earn a net profit of $500,000 in 2019