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4.22 Breakeven point; profit; cost function Chloe Enterprises operates a single-product entity. Data relating to the product for 2016 were as follows: Annual volume Selling price per unit Variable manufacturing cost per unit Annual fixed manufacturing costs Variable marketing and distribution costs per unit Annual fixed non-manufacturing costs 32 000 units $60 $28 $120 000 $12 $360 000 Required Calculate the break-even units for 2016. (b) Calculate the profit achieved in 2016. (C) Changes in marketing strategy are planned for 2017. This would increase variable marketing and distribution costs by $4 per unit, and reduce fixed non-manufacturing costs by $80 000 per year. Calculate the units that would need to be sold in 2017 to achieve the same profit as in 2016. (d) Would you recommend the change? Explain. (L02,3)