Q3. Style Limited produce and sell single product. Data relating to last year operating as follows

	$
Contribution margin ratio	0.49999999999999989
Selling price	51
Fixed expenses	213528
Number of units sold	33000

Requirements

• Prepare contribution format income statement to compute net operating income of the company.
• Calculate breakeven point in units, in dollar sales, margin of safety in percentage, and degree of operating leverage. Briefly interpret results you have calculated
• President of the company wants to invest in advertising so that sales unit can be increased. He thinks this that increase in advertising expenses (fixed expenses) will increase sales units by 50%, decrease variable expenses per unit by 40%, and 10% increase in net operating income. If these changes take place what should be the new breakeven point in dollar sales. There will be no change in selling price per unit