At March 31st, Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months: 60,000 April May 75,000 June 90,000 July 81,000 Streuling's Board of Directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales. The selling price is $2.00 per unit. One-third of sales are paid for by customers in the month of the sale, the balance is collected in the following month. Required: a) Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. (9 marks) b) Prepare a schedule of expected cash collections for each of the months April, May, and June (12 marks) The following is Alsatia Corporation's contribution format income statement for last month: Sales $1,400,000 900,000 Less variable expenses Contribution margin Less fixed expenses 500,000 300,000 Net income $200,000 The company has no beginning or ending inventories and produced and sold 10,000 units during the month. Required: a) What is the company's contribution margin ratio? (2 marks) b) What is the company's break-even in units? (4 marks) c) If sales increase by 100 units, by how much should net income increase? (2 marks) d) How many units would the company have to sell to attain target profits of $225,000? (2 marks) e) What is the company's margin of safety in dollars? (2 marks) f) What is the company's degree of operating leverage? (2 marks)