Question 1 CVP question Laila company has provided the following information about the company Sales $225,000 Sales Discount $20,000 Overhead cost (Fixed) $ 35,000 Overhead (Variable) $ 20,000 Sales Return /Allowance $2,500 Selling commission (variable) $ 39,600 Supplies $2,600 Selling commission (fixed) $ 15,000 Prepaid expense $11,000 Variable admin expenses $ 24500 Accrued cost $7900 Fixed admin expenses $ 20,000 Tax 25% Interest expenses $5,420 Capacity of production 4,000 units Units sold 3,500 Units produced 3,500 Hint: all selling and admin costs are operating expenses REQUIRED 1. Calculate the net income using contribution approach 2. Calculate Net income using the absorption method [ Financial Accounting method] 3. Find CM per unit and the Contribution Margin Ratio 4. Determine the breakeven sales in units and dollars 5. Draw a graph to show the profit and lost and breakeven point for this company (BE graph) 6. Calculate margin of safety in dollars and in percentage . Explain what this concept means to a cost accountant. 7. The sales manager believes that a project of the company could increase sales by 25% but variable cost will also decrease by $5,000 and fixed cost will increase by $ 85,000. Should the company accept the project or reject? 8. Determine the sales revenue necessary to generate before tax profit if the after tax is$ 75,000. The tax rate is 18% 9. Determine sales revenue necessary to generate after-tax profit of $85,000 10. Calculate degree of leverage (DOL) and if sales increases by 25%, what will be the increase or decrease in net income in $ of this company? What will be the total net income if the project is accepted [use original data in the beginning)