Mohammad Holding is a manufacturer of camping trailers based in Mount Druitt, Sydney, nearly 70 per cent of the companys output is exported to New Zealand, Fiji island and Indonesia. The fixed costs are $200,000 per annum and the variable costs are $500 per trailer. The trailers are sold for $800 each. Currently 2,000 trailers are made and sold in a year. Required: a) Calculate the contribution margin ratio and break even each trailer (in unit). [2 Marks ] b) Calculate the profit made by the Mohammads holdings of the current level of sales. Calculate degrees of operating leverage. [ 2 Marks ] c) Calculate margin of safety units for the year. Calculate margin of safety percentage. [ 2 Marks ] d) Due to a new entrant in the market, Mohammads Holding is forced to a lower its price to $650 in the coming year. Calculate the impact the price cut will have on annual profit. [ 2 Marks ] e) For the coming financial year, the management has decided to boost the net operating income, as part of this decision the company will give sale commission to the sales staff based on per product sold. Assume the company has 2 different products, product 1: Sales per unit $900 and CM $350 per unit. Product 2: Sales per unit $700 and CM per unit $400. Comment on the decision made by the management. [3 Marks]