Texas Co. plans to produce and sell electronic products. Theprojected data for producing its products are as follows:Budgeted sales (in units)3,000Selling price per unit$60Variable costs per unit$36Total fixed costs$40,000Income tax rate30%Desired profits after tax$35,000

Required)Please answer the following questions and show all your works (formula and numbers) to get full credits.

a.What are the contribution margin per unit and CM ratio?

b.How many units (per year) would it have to produce in order to break even?

c.To earn the desire after-tax profits, how many units would it have to sell/produce?

d.Calculate the margin of safety ratio in the budgets amounts are sold. Define what is meant by the MOS.e.Calculate the degree of operating leverage if the budgets amount are sold.

Define what is meant by the DOL.