Question 1 $
1.current annual operating = 5000000 * (0.5-0.3) - 900000 = 100000
2.the present breakeven point ：
units = 900000 / （0.5-0.3） = 4500000
revenues = 4500000 * 0.5 = 2250000
3.new operating
= 5000000*（1+40%）* [0.5*（1 -20%）- 0.3*(1-10%)] -900000*(1 - 20%) = 190000
4.the new breakeven point ：
units =（900000 + 20000） / [0.5 *（1+10%）-0.3 ]= 3680000
revenues = 3680000 * 0.5 *（1+10%） = 2024000
Question 2 $
1.static budget-based variance analysis of the September performance：
current annual operating = 15000 * （20-8）- 145000 = 35000
2.flexible budget-based variance analysis of the September performance：
current annual operating = 12000 * （21-7）- 150000 = 18000
3.Because of （or Premise Analysis ）：
operating budget:：15000 * （20-8）- 145000 = 35000
Circulation 1 ：12000 * （20-8）- 145000 = -1000
Circulation 2 ：12000 * （21-8）- 145000 = 11000
Circulation 3 ：12000 * （21-7）- 150000 = 18000
variance analysis：
decrease in selling ：-1000 - 35000 = - 36000
cost impact ：11000 - (-1000) = 12000
selling price ：18000 - 11000 = 7000
All the factors ：- 36000 +12000 + 7000 = -17000
Accordingly,Find the flexible-budget-based variance analysis more informative than the static-budget-based variance analysis.
（For reference only）