QUESTION 1 Dallas Manufacturing makes soft toys in a variety of colours and sizes. During 2020, the company sold $4,000,000 of toys, earned a contribution margin of $750,000, and ha net income of $400,000. Variable cost of manufacturing per toy was $2.50. During 2020, the company incurred $3,000,000 in selling costs - all variable. There were no merchandise or in-process inventories in 2020. Required 5 a. Calculate the break-even quantity and the margin of safety for 2020, in units. Break even Margin of Safety Calculations here: 4 b. The president of the company wants better control over selling costs. He has asked the controller to investigate a proposal to create a sales department. This would add $400,000 in salaries and rent, but variable selling costs would be reduced by $4 per toy sold. Calculate the break-even sales quantity if the proposal to create a sales department is implemented. Answer here