Lumtra Inc. is a small business that sells flowerpots in Stratford. A gross margin income statement for a recent quarter is presented below. Lumtra Inc. Gross Margin Income Statement For the Most Recent Quarter Sales $225,000 123,750 101,250 Cost of goods sold Gross margin Selling and adminstrative expenses: Selling expenses Administrative expenses Operating income 35,300 25,200 60,500 $40,750 The flowerpots sell, on average, for $100 each. The company's variable selling expenses are $4.00 per flowerpot sold. The remaining selling expenses are fixed. Variable administrative expenses are 3% of sales. Carefully check your answers before submitting. If you get a response incorrect in the beginning of the question, this could result in the remaining parts also being incorrect. 1. What are the total variable costs (rounded to the nearest dollar)? (3 marks) Number 2. What is the total contribution margin (rounded to the nearest dollar)? (1 mark) Number 3. What is the contribution margin per unit (rounded to nearest cent)? (1 mark) Number 4. What are the total fixed costs (rounded to the nearest dollar)? (2 marks) Number 5. How many units must be sold to break-even (rounded to nearest unit)? (1 mark) Number 6. What is the break-even point in total sales dollars (rounded to nearest dollar)? (1 mark) Number 7. Calculate margin of safety (in dollars). (1 mark) Number 8. Calculate degree of operating leverage (rounded to two decimal points) (1 mark) Number 9. If the company sells 2,400 more units in the next quarter than it did in the latest quarter, and fixed costs remain the same, how much will operating income increase by (rounded to the nearest dollar)? (1 mark) Number 10. Management believes that if they increase advertising expenses by $15,000, this will increase unit sales by 600. What is the increase or decrease in operating profit if they decide to increase advertising expenses (rounded to the nearest dollar)? (2 marks) Number 11. Should they increase advertising expenses? (1 mark) Yes, Lumtra Inc. should increase advertising expenses. No, Lumtra Inc. should not increase advertising expenses. 12. How many units must the store sell to earn a $50,000 target operating income for a quarter (rounded to the nearest dollar)? (1 mark) Number