Senah International Lid manufactures and exports an engine for carpet cleaners called the "Snooper." The budgeted cost and revenue data for the first half of the year 2017 for the "Snooper" are given below: Sales (40,000 units) RM 1,600,000 Less: Cost of goods sold 1.120,000 Gross margin 480.000 Less: Operating expenses 100.000 Operating income 380.000 Cost of goods sold consists of RM810,000 of variable costs and RM310,000 of fixed costs. Operating expenses consist of RM30,000 of variable costs and RM70,000 of fixed costs. Senah International Ltd received the following proposals to be implemented in the second half of the year 2017: i. To accept an order for 6,000 units from Leman Corporation. There will be no increase in fixed costs, but variable costs will be reduced by RMI per unit due to economies of scale. The company has sufficient capacity if it were to accept the order. ii. To undertake Transformation program which aims to increase sales units by 10 percent from the first half. This is to be achieved by reducing the selling price by 5 percent and investing an additional RM 19,500 on advertising. The management is considering implementing only one of the proposals. Required: 1) Prepare contribution income statement for the first half of the year 2017. (3 marks) 2) Calculate the unit contribution margin and contribution margin ratio (CMR) for Snooper first half of the year 2017. (3 marks) 3) Calculate the break-even point in units and Ringgit Malaysia (RM) for the first half of the year 2017. Use CMR in your computation. (3 marks) 4) Calculate the safety margin (in RM) for the first half of the year 2017. Briefly explain what do you understand by the "safety margin" in this context. (4 marks) 5) For each of the proposals, i.e accepting an order from Leman Corporation and undertaking Transformation: i. Will there be any change in the breakeven point? If there is, what is the direction of the change? Why? (No computation is required). (4 marks) ii. evaluate its impact on the operating income. Show your computation. (4 marks) 6) Refer to your answer in requirement 5) and 5(ii) above. Advise Senah International Ltd which proposal to be implemented in the second half of the year 2017. Explain your answer (4 marks)