Question 3 Company Xenax is a merchandising company that purchases a special farming scissors for harvesting vegetables from a neighboring country and sells to the local market. Data concerning this scissors appear below: PerUnit Perm of Sales Cm Fixed expenses are $625,040 per month. The company is currently selling 9.000 units per month. Required: How many units would the company need to sell in order to break even? (3 marks) Compute the margin of safety in bags and percentage of sales. (4 marks) Compute the company's monthly operating income with the existing sales volume. (4 marks) Compute the sales revenue needed to produce a target net profit of $200,000 per month. (4 marks) The following proposals were received from the current two marketing managers in the company, Mr. John and Ms. Alexis Proposal from Mr. John Mr. John believes that a $7,000 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. Proposal from Ms. Alexis Management is to consider using a new component that would increase the unit variable cost by S3. Since the new component would increase the features of the company's product, Ms. Alexis predicts that monthly sales would increase by 200 units. i Compute the break even for cach proposal. Compute net operating income of the corporation for each proposal. If the corporation decide to adopt one of the proposal above which proposal would be accepted? Please justify your resaons) (6 marks) Explain any two assumptions that the corporation would need to undertake in applying break even analysis. (4 marks)