Draaksh Corporation sells premium quality wine for $100 per bottle. Its direct materials and direct labour costs are $19 and $16 respectively per bottle. It pays its direct labour employees a wage of $22 per hour The company performed a regression analysis using the past 12 months' data and established the following monthly cost equation for manufacturing overhead costs using direct labour hours as the overhead allocation base y-$153,200 + $21.50x Draaksh believes that the above cost estimates will not substantially change for the next fiscal year. Given the stiff competition in the wine market, Draaksh budgeted an amount of $34,000 per month for sales promotions; additionally, it has decided to offer a sales commission of $5.25 per bottle to its sales personnel. Administrative expenses are expected to be $25,000 per month. Required 1. Compute the expected total variable cost per bottle and the expected contribution margin ratio Total variable cost S 51 Contribution margin ratio 49 % 2. Compute the annual break-even sales in units and dollars 51,967 5,196,735 Annual breakeven sales in units Annual breakeven sales in dollars$ 3. Draaksh has budgeted sales of $7.5 milion for the next fiscal year. What is the company's margin of safety in dollars and as a percentage of budgeted sales? Margin of safety Budgeted sales