please only answering the below question. Part 2 – Planning (20%) Oren Ltd manuf

please only answering the below question.
Part 2 – Planning (20%)
Oren Ltd manufactures and sells 3 products with the following selling prices and variable costs:
£ per unit Product A Product B Product C
Selling price 3.00 2.45 4.00
Variable cost 1.20 1.67 2.60
Currently, the sales per year is as follows:
Product A 500,000 units 25%
Product B 1,100,000 units 54%
Product C 400,000 units 21%
Management is considering an advertising boost from Product A which, with a reduction in the selling price, will increase sales of Product A. If £60,000 was to be spent on the advertising, sales of Product A (at reduced selling prices) would be expected to be:
700,000 units at £2.75 per unit
or 750,000 units at £2.55 per unit.
Currently total fixed costs are £1,800,000 per year (all three products).
Required:
(a) Calculate the break-even (in sales revenue).
(b) Advise the management if the expenditure on advertising – together with selling price reduction – should be introduced for Product A.

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