A. Alejandra Limited sells one product for which data is given below: Selling price $24 per unit and Variable cost $16

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A. Alejandra Limited sells one product for which data is given below: Selling price $24 per unit and Variable cost $16

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A. Alejandra Limited sells one product for which data is givenbelow:Selling price $24 per unit and Variable cost $16 per unitFixed cost per annum $840,000Required:(i) Calculate the breakeven point in units per annum. (ii) Calculate the number of units that must be sold if AlejandraLimited wishesto earn a minimum profit of $600,000 for the year. (iii) Explain the impact of increasing the selling price and how itwill affectAlejandra Limited’s breakeven point. [ No calculations arerequired]B. Listed below are the two types of cost behaviour, you arerequired todefine each type of cost behaviours.(i) Fixed Costs(ii) Variable CostsC. Alejandra Limited has the following total costs for themanufacture ofProduct Jandra over a period of 2 months. Using the high-lowmethod,answer the following questions.In the month of January, 16,000 units per produced at a total costof$110,000 while in the month of February 12,000 units were producedat atotal cost of $90,000.Required:(i) Calculate the variable cost per unit produced.(ii) Calculate the fixed cost portion of the totalcost. (iii) If the company produces 14,800 units in March, what will bethe totalcost?[Show all the formulae used and workings to support yourfinalanswers]
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