We have the following current information about our company called FvYK$.$ The board of

directors' expectation from you as CEO is that you increase the total profit by exactly $10\%,$ but

while doing this, you should not reduce the operating leverage below two, and there is no harm

in increasing it$.$ You cannot reduce your sales $($units$)$ and you can increase them up to $40\%$ at

most, but of course this means accepting a decrease in your prices. According to your marketing

manager, who is always right:

The formula "Required $\%$ decrease in price $=$ Desired $\%$ increase in sales $($units$)/4"$ is valid for

our company and sector within the above limits$.$

You think you can improve your unit variable costs by up to $5\%,$ but you also know that every

$1\%$ improvement means a $1,000$ TL increase in fixed costs.

a$-$ What is Unit Variable Cost? $($TL$)$

b$-$ What is the Break$-$Even Point Production Amount? $($units$)$

c$-$ What is the Break$-$Even Point Sales Amount? $($TL$)$

d$-$ Is it possible to meet the YK request under these conditions? How? Explain specifically.

e$-$ Can you provide the board with something better than the $10\%$ increase in profit they

want? How? Explain specifically.

Show your calculations step by step in your answers, and state your assumptions clearly if

you need to make any.