CVP question Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead cost (Fixed) $ 35,000 Overhead (Variable) $ 20,000 $2,500 Sales Return /Allowance Selling commission (variable) Supplies $ 39,600 $2,600 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 4,000 units Capacity of production Units sold 3,500 Units produced 3,500 Hint: all selling and admin costs are operating expenses 5. Draw a graph to show the profit and lost and breakeven point for this company (BE graph) 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