CVP question Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead cost (Fixed) $ 35,000 $ 20,000 Overhead (Variable) Sales Return /Allowance $2,500 Selling commission (variable] $ 39,600 $2,600 Supplies Selling commission [fixed] $ 15,000 Prepaid expense $11,000 Variable admin expenses $ 24500 Accrued cost $7900 Fixed admin expenses $ 20,000 Tax 25% Interest expenses $5,420 Capacity of production 4,000 units Units sold 3,500 Units produced 3,500 Hint: all selling and admin costs are operating expenses 6. Calculate margin of safety in dollars and in percentage. Explain what this concept means to a cost accountant. 7. The sales manager believes that a project of the company could increase sales by 25% but variable cost will also decrease by $5,000 and fixed cost will increase by $ 85,000. Should the company accept the project or reject? 8. Determine the sales revenue necessary to generate before tax profit if the after tax is$75,000. The tax rate is 18% 9. Determine sales revenue necessary to generate after-tax profit of $85,000 10. Calculate degree of leverage (DOL) and if sales increases by 25%, what will be the increase or decrease in net income in $ of this company? What will be the total net income if the project is accepted