Metro International manufactures two products - plasma TV and high quality laptop. Plasma TV sells for $800 and high quality laptop for $1200. Company sells its products through its own stores and other outlets. Total fixed expenses of Metro International are $132,000 per month. Variable expenses and monthly sales data are given below: Variable expenses per unit Monthly sales in units Plasma TV $480 Laptop $240 250 Units 50 Units Required: 1. Prepare a contribution margin format income statement showing dollars and percent columns for products and for the company as a whole. (10 pts) 2. Compute a) the break-even point in dollars (using the package contribution margin) and b) margin of safety. 3. Metro International is considering to manufacture another product - an inverter. The addition of new product will not affect the fixed cost of the company. The variable expenses to manufacture and sell an inverter will be $1,200. If the new product is sold for $1,600 the monthly expected sales are 25 inverters. (a) Prepare a new contribution margin income statement. (b) Compute the new break-even point using weighted average contribution margin method. 4. Compute margin of safety in dollars of the company. 5. The president is unable to understand the increase in break-even sales because the new product has increased the sales revenue and contribution margin without any increase in fixed costs. Explain to the president the reason of increase in break-even sales.