Question 5 (11 marks) Mickey Ltd is a service firm with a current service revenue of $900000 and a 40% contribution margin. Its fixed costs are $200,000. Minno Ltd has current sales of $420,000 and a 30% contribution margin. Its fixed costs are $90,000. Required: SHOW YOUR WORKINGS FOR EACH SECTION a) Prepare a contribution margin income statement for the two companies. (2 marks) ANSWER a): b) Calculate the breakeven point in sales dollars for the two companies. (2.5 marks) ANSWER b): c) What is the margin of safety for the two companies? Which is stronger? (2 marks) ANSWER c): d) If sales increase for both companies, which company will realise the greatest increase in profits? Explain. (2.5 marks) (Word limit: 150 words) ANSWER d): e) Would the CVP Analysis technique be appropriate as a planning tool for businesses operating during the global pandemic period? Explain. (2 marks) (Word limit: 150 words) ANSWER e)