IT inc has recently experience a decline in sales and the first loss caused by increased local and global competition for its main product, a luggage that is sold in discount stores throughout Canada. The following table shows the results of IT's operations for the most recent year:Sales (13,500 units @ $ 84)$ 1,134,000Variable costs (13,500 @ $ 63)$ 850,500 Contribution margin$ 283,500 Fixed costs$ 296,100 Operating profit (loss)($ 12,600) The income tax rate for IT is 30% Required:1.Compute IT's breakeven point in dollars 2.Compute the margin of safety % for IT 3.What would be the required sales in dollars to generate an after tax profit of $ 21,000? 4.During the year, IT saved $ 5 unit variable cost per luggage by buying from a different manufacturer. However, changing the plant machinery to accommodate the new part means an additional $ 50,000 in fixed cost per year. Discuss if this is a good change for IT. 5.The manager believes that a $ 60,000 increase in advertising would result in approximately a $ 200,000 increase in annual sales. If the manager is right, what will be the effect on the company's operating profit or loss?