QUESTION 3 Goblin Lawn Chair Company produces and sells a single high-priced lawn chair and in year 2016 the company produces and sold 30,000 units. Below is the financial information pertaining to the company for the year ended 31" December 2016: - RM Sales Variable costs Fixed costs Income before taxes Tax Expense 1,800,000 1,350,000 240,000 210,000 63,000 Required i. Compute the breakeven point in units and in Ringgit Malaysia. (4 marks) ii. Compute the company's margin of safety. (2 marks) III. Compute the company's degree of operating leverage at the current level of operations. If the company's sales in units were to increase 30%, compute how much is the profit before taxes increase in percentage? (4 marks) iv. Assume the company is expecting to experience a shortage of its main raw material. This situation is expected to result in an increase in the company's manufacturing costs of RM3 per unit. Under this circumstances, and assuming that the company does not believe that it can increase its selling price, compute the company's new breakeven point in Ringgit Malaysia and new margin of safety. (5 marks) Management has decided to raise the price of its product to RM65 per unit. It also will spend additional RM102,000 per year for advertising. Although it has never pald commissions before, the company has decided to begin paying sales personnel RMi per unit for overy unit sold. Compute the new breakeven point in units and new margin of safety of the company under this plan, if sales only reach 27,000 units. (Note: In computing your solutions, ignore part (lv) abow and solve this question using the original data). (5 maria) (Total: 20 marks)