1) Annabelle generates revenue by selling toy for $5. The variable cost of goods sold per toy is $1, with a selling commission of 10 percent of sales. Fixed manufacturing costs total $25,000 per month, while fixed selling and administrative costs total $10,500. The corporate income tax rate for Annabelle Company is 30 percent. (60 marks) Required: a. What is the break-even point for toys? b. What are target sales in toys to generate a before-tax income of $3,000? c. What are target sales in toys to generate an after-tax income of $3,080? d. What is net income assuming Annabelle sells total 15,000 toys? 2) Explain the concept of margin safety and operating leverage. How do they affected in a recessionary