(10 marks) Tanner Company's contribution format income statement for last year is presented below: Sales $150,000 Less: variable expenses 90,000 Contribution margin 60,000 Less: fixed expenses 30,000 Operating income 30,000 The company sells its only product for $500 per unit. There were no beginning or ending inventories. Required: MAKE SURE THAT YOU SHOW ALL OF YOUR CALCULATIONS AND PROPERLY LABEL EACH ITEM FOR FULL MARKS a) Compute the company's break-even point in sales dollars. USE THE CONTRIBUTION MARGIN RATIO TO MAKE THIS CALCULATION (2 marks) b) Compute the company's break-even point in units. (1 mark) c) How many units would have to be sold in order to earn a target operating income of $90.000? (2 marks) d) The sales manager is convinced that a $15,000 increase in the advertising budget would increase total sales by $30,000. Would you advise the increased advertising outlay? ANSWER THE QUESTION USING INCREMENTAL ANALYSIS (2 marks) e) What is the company's margin of safety in dollars for last year? (1 mark) f) Using the company's results for last year, please determine the company's degree of operating leverage? (1 mark) g) Assuming that the company has a degree of operating leverage of 6, estimate the impact of a sales increase of 10% on operating income? (1 mark)