Question 1 A company produces a single product called the Fidget. The following information relating to the next year has been provided: $ Sales 1,200,000 Less Variable expenses 840,000 Contribution margin 360,000 Less Fixed expenses 300,000 Net operating income 60,000 The company plans to sell 15,000 next year Required: a. Calculate the contribution margin per unit and the contribution margin ratio [3 marks] b. Compute the breakeven point in units and dollar value [4 marks] [4 marks] C. Compute the number of units to be sold in order to earn a profit of $36,000 d. Calculate the sales value required to earn a profit of $36,000 if the tax rate is 25% [5 marks] [3 marks] e. Calculate the margin of safety ratio f. Using an excel sheet, prepare the breakeven chart assuming that the company sells [9 marks] 15,000 units [2 marks] g. State two (2) assumptions of CVP analysis