4 marks 2. The ABC Company Ltd. manufactures and sells a specialized cordless microphone for large gathering environments . The company's contribution format income statement for the most recent year is given below: Per Unit (GHC) 80 Percent of Sales 100 ? Sales Variable expenses Contribution margin Fixed expenses Net operating income Total (GH) 1.600,000 1.200,000 400,000 300,000 100,000 ? ? The management of the company desires to increase profit next year and has asked you for analysis of a number of items. Required: a) Compute the company's CM ratio and variable expense ratio. 4 marks b) Compute the company's break-even point in both unit sales and cedi sales. 4 marks c) Assume that sales increase by GH300,000 next year. If cost behavior patterns remain unchanged by how much will the company's net operating income increase? Use both the contribution margin ratio and the income statement to compute your answer. 8 marks d) Refer to the original data. Compute the company's margin of safety in both cedi and percentage form and interpret your results. 4 marks 2