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Directions: Complete the Part 1 by putting formulas into the cells as requested Complete Part 2 by analyzing qualitative factors. Part 1: Quantitative Analysis Joseph A. Bobcat Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling prices. A unit is defined as one suit. Each store has a manager who is paid a fixed salary Individual sales people receive a fixed salary and a sales commission. Bobcat Co. is considering opening another store that is expected to have the revenue and cost relationships show in Exhiblt A EXHIBITA Unit data (per sult) Annual Fixed Costs 160.00 45,00 $200,000 $50,000 $25,000 320,000 Selling price per unit Variable cost per unit en Salaries Advertising Other fixed costs $120.00 Cost of suits Sales commission Variable cost per unit S128.00 Tax rate 40% Plan 2 increase Fixed cost by: 80,000 1 Using the information in Exhibit A, create a contribution margin income statement for each sales level below. Also calculate break-even revenues, the margin of safety, and operating leverage. To receive full credit, yellow cells should contain only cell references and no numbers. Units Sold 9,000 10,000 11,000 12,000 13,000 Revenue $1,440,000 $ 1,600,000 $ 1,760,000 $ 1,920,000 $ 2,080,000 Variable costs 1,152,000_1.280,000 1,408,000 1,536,000 1,664,000 Contribution margin $ 288,000 320,000 $ 352,000 $ 384,000 $ 416,000 320,000 S 320,000 64,000 96,000 -19,20038,400 $ 57,600 Fixed costs S320,000 320,000 S320,000 32,000 Operating Income $ (32,000) $ After-tax Income (32,000) $ GRADING 1 point for correct AT income Break-even Revenues 1,600,000 $ 1,600,000 $ 1,600,000 1,600,000 1,600,000 -160,000 $ 320,000 $ 480,000 4.33 Margin of Safety(160,000)$ Operating Leverage 1 point for correct Break-even Revenues 1 point for correct Margin of Safety 1 point for correct Operating Leverage calculation 11.00 6.00