TOU at Winter 2021.pdf The following income statement was prepared by South Retail Limited: South Limited Income Statement For the Year Ended December 31, 2020 Sales $290,000 Cost of Goods Sold 203.000 Gross Profit $ 87,000 Operating Expenses: Selling Expense $34,800 Administrative Expense 29,000 (63.800) Operating Income 23.200 The company's selling expenses are 25% variable and 75% fixed. The administrative expenses are 10% variable and 90% fixed. During 2020, South Limited sold 10,000 units. Required: a. Prepare a contribution margin format income statement for South Limited for the year ending December 31, 2020. Include a "per unit" and "percentage" column. b. Calculate the company's break-even point in both total sales dollars and units. c. Calculate the margin of safety both in dollars and as a percentage of sales. d. Calculate the revised operating income (loss) assuming that the sales volume increases by 20%. Do not prepare a new income statement. Use the incremental approach. e. Calculate the revised operating income (loss) assuming that the sales volume decreases by 40%. Do not prepare a new income statement. Use the incremental approach. f. Management feels that an expenditure of S20,000 for a special sales promotion campaign would enable the company to increase its sales by 20 percent with no change in selling price. The additional sales are within the relevant range. Do you recommend implementing management's suggestion? Why or why not? Support your answer with at least one appropriate calculation