c. Compute the margin of safety in sales dollars for each door. (6 marks)

1. Compute the degree of operating leverage for each door. (round up to 2 decimal places). (6 marks)

1. If there is an increase in sales for each door of 25% what would be theincrease in net income for each door? What will be the net income for each door. (4 marks)

f. In your own words explain sensitivity analysis. (3 marks)

g. In your own words explain why a company would compute margin of safety?(2 marks)

Question 18 (31 points) Saved Entrance Way manufacturers Storm Doors. Currently the company produces a door with no side glass (Majestic)and one with side glass (Royal). The following data gathered on each door for 2020: Majestic Royal Number of units sold 4,000 4,250 Sales $3,750,000 $4,050,000 Fixed manufacturing cost $540,000 $675,000 Total variable costs $1,750,000 $ 2,137,500 Paragraph BIUVA EVEN + v . . . Lato (Recomm.. 19 px (... EQ > O C a. Compute the contribution margin per unit for each door. (6 marks) b. Compute the breakeven per door in units for each door. ( 4 marks) Compute the margin of cafetu in calac dollars for each door (6 marke)