1. Oman Beta company sells 5,000 T-shirts in UAE. Salespersons are paid basic salary plus a decent commission of $14 on each sale made by them. Selling price and other expenses data is given below:

Selling price per t-shirt	$80
Variable cost per t-shirt Direct Cost per unit $ 36 Sales commission 14	50
Total Fixed cost per year Rent $19,200 Marketing 36,000 Salaries 16,800	72,000

Required: (5marks)

1. Compute contribution margin per unit and as ratio
2. Compute the breakeven point in units and in dollars
3. Compute margin of safety in dollars
4. Calculate the breakeven point if the manager is paid an extra commission of $6 per t-shirt

What will be the effect of change on net operating income or loss of Beta company if 23,500 t-shirts were sold and fixed income increased to $100,000?