Work on the following $3$ Questions:Question $1$: Scenario CQuestion $2$: Part cQuestion $3$: Parts $1$ & $2$Question $1$:Sales Revenue: $$1,000,000$Direct Materials: $$500,000$Direct Labour: $$200,000$Overhead: $$200,000$Required:Scenario A $($DONE IN CLASS$)1.$ Calculate the Gross Profit in $$2.$ Calculate the Gross Margins in $\%3.$ Show how much of each $1$$ of revenue is being allocated to eachcost to the profit.Scenario B $($DONE IN CLASS$)4.$ Repeat from part $1$ to $3$ with this scenario now: Reduce DM by$10\%$ and DL by $5\%\mathrm{.}5.$ What can you say about the results between Scenario A & B$?$Scenario C $($HOMEWORK$)6.$ To get the same result as in Scenario B $(+60\%$ profit$)$ throughSales modifications this time, how would you do that?$7.$ Show your results by repeating your calculations as you did abovefrom $1$ to $3.$Question $2$Inventory Turns Example Problema. What will be the Inventory Turns Ratio if the annual C of GS is$$24$ million and the average inventory is $$6$ million? $($DONE INCLASS$)$b$.$ What would be the reduction in inventory if turns wereincreased to $12$ times per year? $($DONE IN CLASS$)$c$.$ c$.$ If the cost of carrying inventory is $25\%$ of the averageinventory what will the annual savings be$?($HOMEWORK$)$Question $3$ABC Canada Inc. is a BC based company selling their premiumInventory of TV stands throughout the country.The company just released its projections for their $2024$ Year End basedon $100,000$ of TV stands sales as follows:Sales Revenue $7,500,000$$Variable Expenses:Cost of Goods Sold $3,500,000$$Electricity and Heat $115,000$$Fixed Expenses:Sales force Salary $375,000$$Depreciation $70,000$$Rent Expenses $85,000$$Utilities $15,000$$Total Operating Income Before Tax $3,340,000$$Less Taxes at $35\%1,169,000$$Net Income $2,171,000$$The above results are based on ABC Canada Incs production capacity of$150,000$ units. If their production volume would exceed their capacity,the company needs to expand its facility. As such certain expenseswould increase as follows:Salaries will increase by $20\%,$ Depreciation by $15\%$ andheating$/$electricity by $5\%$ while Rent would increase by $25\%.$Requirement$1.$ Prepare projected Income Statement for ABC Canada Inc forproduction output of for $125,000$ units$\mathrm{.}2.$ Prepare projected Income Statement for ABC Canada Inc for Production output of $175000$ units