Prt' 1. Sam's Small Print Company has developed a new product that will e markcted for the first time during the next fiscal year. Although the marketing department estimates that 30,000 units could be sold at $50 per unit, management has allocated only enough manufacturing capacity to produce a maximum of 25,000 units for the new product annually. The fixed costs associated with the new product are budgeted at $329.000 for the year. The variable costs of the new product are $32.5 per unit Required: a. Determine the contribution margin per unit and the contribution margin rate b. Determine the breakeven in units. c. Determine the breakeven in sales dollars. d. Present the Income Statement using the contribution margin format at 25,000 units. e. Determine the margin of safety and margin of safcty percentage at 25,000 units. t. If management expects $208,500 in profit next year, what unit selling price would they need at the 25,000 unit level? 2. Explain the use of "operating leverage" for a company who wants to provide an incentive for sales personnel. The current operating leverage is "4 times" and the company hopes to increase sales by 20%. Explain how this concept may be used to motivate the sales force when the company's current year's income amounts to $50,000. a) What would be the amount of the expected net income for the next period? b) Explain how this concept may be used to motivate the sales force