W BFA103 Accountability and Accounting SECTION B Attempt all SIX (6) questions from Section B. 21) Details of XYZ Pty Ltd's income statement for the past year are as follows: Sales (22 000 units) $1 320 000 Cost of sales: Direct materials $440 000 Direct labour 396 000 Variable factory overhead 88 000 Fixed factory overhead 60 000 984 000 Gross profit 336 000 Variable selling expenses 132 000 Fixed selling and administrative expenses 30 000 162 000 Net profit 174 000 Required Consider each of the following independent situations. a. Determine the company's break-even point in units and sales dollars. [4 marks] FOR STUDENTS TO FILL b. If the company wants to earn a target profit of $156 000, what is the dollar level of sales necessary to reach its goal?[4 marks] FOR STUDENTS TO FILL b. If the company wants to earn a target profit of $156 000, what is the dollar level of sales necessary to reach its goal? [2 marks] FOR STUDENTS TO FILL C. If direct material costs increase 10%, direct labour costs increase 15%, variable overhead costs increase 10%, and fixed overhead increases by $10 000, how many units must be sold to earn a target profit of $128 000? Round your calculations to the next highest unit. [4 marks] FOR STUDENTS TO FILL d. Many airlines offer substantial discounts on some of their normal airfares. How can these discounts be justified on the basis of CVP relationships? Use relevant examples to explain your answer, [2 marks]