XYZ Limited budgets to sell 3 products and has provided you with the following selling prices and variable costs:

Product	Sales Units	Selling Price per unit	Variable costs
		N$	N$
X	600 000	10	5
Y	400 000	11	6
Z	1 000 000	6	3

Fixed cost is 4 000 000

1. Calculate the total budgeted profit.

2. Calculate the contribution to sales ratio for each product. 3. Calculate the breakeven sales volume per product and in total.

4. How many units of each product and in total would XYZ Ltd need to sell to earn a total profit of N$6 000 000?

5. XYZ marketing manager is proposing to spend an extra N$400 000 on advertising and sales promotion of Product X. She is considering reducing the selling price of X to N$9 per unit, resulting in expected sales of 800 000 units. Evaluate the financial viability of this proposal.