iliac Company sells a single product. The selling price of the product is $50 per unit. Variable expense is $35 per unit. Its total fixed expenses are $9,000 Last month, the company sold 1,000 units of the product. Therefore, the following income statement is presented for the last month. Sales $50,000 Variable expenses 35,000 Last month's Unit Contribution Margin Contribution margin 15,000 Fixed expenses Net operating income 6,000 = Unit selling price-Unit variable expense-s50-s35-S15 Break-even point = $30,000 9000 (1) Compute the margin of safety in dollars for last month. (2) Compute the degree of operating leverage for last month (3) A manager has suggested the following actions for this month: Improve the quality of the product. It will cause a $5 increase of per-unit variable cost. Raise the selling price to $60 per unit (by $10). Close the store on Sundays. This action can save $2,000 in fixed expenses. . If the above suggestions are adopted, it is estimated that the demand for this product will be 700 units this month. Is it a good idea for the company to follow the manager's suggestion? You need to show your computations and explain. Ignore 3) above. Assume that the variable expense per unit has increased to $45. For this month, the company has set a target of achieving a $6,000 profit (sam wants to sell 1,000 units for that purpose. For the company to achieve the target profit, the new selling price should beS e as last month). And the company per unit. Show your computations or reasoning