Buzz & Woody Limited Buzz and Woody the owners of Buzz and Woody Limited are having a disagreement and have come to you for assistance. They are concerned because the sales of Product 1 have been declining and have different ideas on how to improve profitability. They have provided the following information for the year ended March 31, 2020: Sales Cost of goods sold Selling expenses Wages Administrative expenses Advertising expenses $1,050,000 493,100 137,000 129,000 69,000 48,000 Additional information: Selling expenses are 80% variable and 20% fixed Administrative expenses are 80% fixed and 20% variable Wages and advertising are 100% fixed The company sold 30,000 units of Product 1 during the year ended March 31, 2020. Required: (a) Prepare a contribution format income statement for the year ended March 31, 2020. Include per unit & % columns. (b) Calculate breakeven point both in terms of sales dollars and units. (c) Calculate the margin of safety in dollars & the degree of operating leverage. (d) In an effort to try & improve sales Buzz and Woody are considering the following options: 1. Buzz feels that if they begin paying the salespersons a commission of $1.50 per unit that sales volume will increase by 20% while their fixed expenses will decrease by $15,000. 2. Woody feels that if they decrease the selling price by 15% and increase their advertising by $7,000 they will sell an additional 15,000 units. Which option should Woody & Buzz choose and indicate why they should make that choice? Show calculations to support your answer. Round to 2 decimal places in calculating per unit & % amounts