Question 1 Hope Sdn Bhd makes a product (Alpha) that it sells 5,000 units at a selling price of RM150 per unit. The company incurs annual fixed cost of RM160,000 and variable costs of RM100 per unit. Required: 1. Determine the break-even point in units and sales value (RM value) using the contribution margin approach. 2. Suppose that the company now desires to earn a RM40,000 profit and at the same time is experiencing a reduced sales price at RM140 per unit. Determine the level of sales in units and RM value) required to earn the target profit. 3. Independent of Requirement (2), if the fixed costs drop to RM140,000, what is the level of sales in units and RM value) to earn the desired profit of RM40,000. Independent of Requirement (2) and (3), determine the degree of operating leverage for Hope Sdn Bhd. Use the degree of operating leverage calculated to estimate the amount of net income for the company if it reduces the sales by 5%