Question Completion Status Zara Company which produces one product has the below information available for the past month Sales revenue (4000 units @ AED20.00 per unit) AED80,000 Variable expenses 60.000 Contribution margin 20,000 Fixed expenses 12.000 AED 8.000 Operating income Required: 1. Compute the company's (2 marks) au points b CM Compide the breakeven sales in Units d Compute the braven sales in Dotar amount Bity expian the meaning of the brea Sales at which there is no for 2. (Refer to the original data) (1 mark (mark) If fixed advertising cost is to be increased by AED1,200 and sales price is to be reduced by AED1, that is expected to increase sales by 2.000 units. What would be the effect of these changes on net operating income of the company? (Prepare a new CM income statement (7 marks) 3. (Refer to the original data) If variable cost per una increases by 5%, price increases by 10% and fixed expenses increase by 20%, what would be the effect of these changes on net operating income of the company? (Prepare a new CM income statement) 4. (Refer to the original Data) if the company is planning to earn a target profit of AED12,000 next month Compute the following The number of sales red to the above pr marks The Dollar sales required to earn the above profit (2 marks)