Question 1 Adorable Car Corporation manufactures and retail a specially designed collectible model cars. In the year the company is expected to sell 4,000 units of this model sports car. The cost accountant of the company has provided the following budgeted information for the coming financial year: per unit Sales 225.00 Material costs 47.50 Labor costs 40.00 Variable production overhead 27.50 Variable selling and distrbution costs 35.00 Fixed production overhead 22.50 Fixed selling and distribution costs 7.50 Fixed administration costs 15.00 The Net Operating Income budgeted for the year is 60,000.00 Required: a) Calculate the break-even point in units and RM for the company. (4 marks) b) Compute the margin of safety for the company in units and percentage. (4 marks) c) Due to increase in labor rates, there will be an increase of 25 per car. If other costs remain intact how many bicycles should be sold to achieve the same net operating income? (4 marks)