vc 32 B- XYZ Company sells its only product for $40 per unit. Its total fixed costs are $180,000 per annum. Its CM ratio is 20%. XYZ plans to sell 16,000 units this year. Required: 72 1. Calculate CM per unit and the variable cost per unit. 2. Calculate break-even point in unit sales and in dollar sales? 3. Calculate the unit sales and dollar sales required to achieve a target profit of $60,000 per year? 4. Assume that the company is able to reduce its variable costs by $4 per unit and accordingly the sales price per unit will also be reduced by 5%. a) Calculate the company's new break-even point in unit sales and in dollar sales? b) Calculate dollar sales required to achieve a target profit of $60,000? 5. In your opinion, did you think the company would be better off with the assumed reductions in + (4)? Why? (12.5 marks) B124/ THE-Final (V1) Page 3 of 5 Summer 2019/2020