Question 4 This question has two parts. Part A and B. You are required to answer both parts Part A Ore Company produces bookcases. Sales were good in 2019. However, with the slowdown in the economy, the Chief Financial Officer is concerned about the sales for 2020 The income statement for 2020 is as follow Sales revenue $600,000 Less: Variable costs $360,000 Contribution margin $240,000 Les Fixed costs S140,000 Net profit $100.000 The company expects to sell 60,000 units in 2020. Compare different types of cost behaviours to do the following (a) Use cost-volume-profit analysis to determine the breakeven point in units and in dollars (4 marks) (1) Use com-volume-profit analysis to determine the margin of safety in units and in dollars (c) Assuming that cost behaviour patiem remains unchanged. compute the decrease in net income if sales revenue dropped by S200,000 in 2020, (5 mars Part Sally Company specializes in office chairs. The company is in the process of preparing detailed budgets for the next few months Month Budgeted Sales (Units) Oct 2021 Nov 2021 800 Dec 2001 1.000 Jan 2022 All sales are on account with no bad debe The company's experience with cash collection is that 70% of each month's sales are collected during the same month as the 900 MERS sale. The remaining 30% of sales is collected in the month after the sale. Budgeted sales for September 2021 is 550,000. The company buys the chairs for 550 cach and sells them for $120 cach to inventory policy requires ending inventory to be 30% of next month's budgeted sales Interpret the above and prepare the following budgets, showing details for each of the months from October 2021 to December 2021 Cash receipts budget (6 mars (b) Merchandise purchases but 16 mark