The flexible budgeting for the Naurution company assumes that the first year of operation will serve either 20%, 40% and 60% of the entire 10,851 population of the Republic of Nauru and that the selling price per one meal is $22. Amelia and Kevin are expected to sell 5 meals per week during the 52 weeks per year. Additional details of the flexible budgeting show that the direct labor costs are $2 per unit, direct materials costs $4 per unit, variable overhead costs are $1 for 20%, $ 0.50 for 40% and $0.25 for 60% expected sales, fixed overhead costs are $1,745,984, and general, selling and administrative expenses are estimated to be $25,000. Income taxes are expected to be 21%. According to the completed flexible budgeting, net income for the 40% levels of sales is: a) 5,287,309 b) 9,567,354 c) 4,934,345 d) 7.435.345 According to the completed flexible budgeting, contribution margin is the highest at which level of activity: a) 20% b) 40% c) 60% d) Contribution margin is negative under all scenarios. AAA Assume that the Kevin and Amelia were able to sell nutrition packages to 40% of the population of Naura during their first year of operation. They sold to the first 20% of the population with a promotional price of $20 per package and were able to raise the price to $22 per package after securing their market share to the remaining 20% of the population. The actual variable costs per unit were as follows: direct labor $1.5, direct materials $4.5. overhead variable costs $0.25. The variances at the end of year for Your Daily Naurution shows which of the following: a) $6,463,507, favorable b) $7.912,224, unfavorable. C) $6,463,507. unfavorable. d) 668,639, unfavorable. Operating leverage exists when small percentage changes in revenue yield large percentage changes in profit. If actual sales of Your Daily Naurution increased from 40% to 50%, how much the percentage increase is net income would be (please round your answer to the nearest two digits)? a) 27.98% b) 26.98% c) 25.98% d) 24.98%