Question 2 - Dancing Bike Company (12 marks) Gladys Legstrong, a retired BMX extreme sports competitor, started Dancing Bike Company (DBC) a bicycle manufacturing business last year. Her first year's contribution format income statement looked like this: Sales 879,000 Less Variable Expenses 483,000 Contribution Margin 396,000 Less Fixed Expenses 297,000 Operating Profi 99,000 NOTE: If the data above is blank it means you haven't entered your student number on the Cover tab. The average price DBC charged for the sculptures was $550 per piece and DBC's income tax rate is 25%. Required: Please answer the following 5 questions using the data above. I have left space after each question for your to do your work. If you need more space you can insert a row. Please do not use column A as I would like to use it to record my marking. 1 What is DBC's break-even point in dollars? (3 marks) 2 What is DBC's margin of safety in units? (2 marks) 3 DBC's goal for year two is to earn an after tax profit of $ 148,500 NOTE: If there is no number in the box to the left it means you haven't entered your student number on the Cover tab. Assuming the cost behaviour is consistent with what was experienced in the first year, the average selling price is still $500 a piece and the tax rate remains the same what would be the total units sold need to be to achieve the goal? (2 marks) 4 DBC was contemplating an advertising campaign in year 2 that would cost them $ 30,000.00 They believed that the advertising would increase units sold from year 1 by 10.00% Should they do the advertising? Why