P1. Holly Company manufactures and sells a product called "Zap". The cost structure of company's manufacturing, selling, and administrative costs are as follows: Total Fixed Costs Per Month Variable Cost per Unit of Zap Manufacturing Selling $450,000 $180,000 $120,000 $6.70 $1.20 $0.10 Administrative Currently company is selling 220,000 units of Zap per month at a selling price $12 per unit. The production capacity is up to 300,000 units per month. Due to inflation and expected recession, company's management has started panicking. To deal with uncertainty associated with future sales and profit, Holly Company has hired you as consultant to generate useful information to deal with uncertainty. Your asked to provide answer to the following questions in the cells highlighted in yellow on the Excel Tab named "Simulation". 1. Management wants to know the amount by which sales can drop before incurring losses. a. Compute Margin of Safety in Units b. Compute Margin of Safety in dollar c. Compute Margin of Safety in % 2. Due to expected decline in sales, Holly company has revised its budgeted sales per month to 200,000 units for the upcoming month. Standard deviation associated with budgeted sales units for next month is 8,000 units based upon the variations in the past. What is the probability of profit to fall between $40,000 to $80,000 next month assuming normal distribution?