3 [25 MARKS] Part 1 The data below is taken from the books of Leisure, a travel agent firm that organizes a city tour package in Hawaii: Selling price Variable costs $150 per package $60 per package Fixed costs Required: $4,500 per month 1. Assume that the current sales level is at $9,000. Determine margin of safety in dollars and interpret your result. [5 marks] 2. Leisure is considering two alternatives to increase its operating income: Alternative 1: posting advertising in several newspaper that will cost $150 per month and is expected to increase sales by 20%. Alternative 2: adding tour locations to the package that will increase selling price by $20 and variable costs by $10. Fixed costs increased by $100. This alternative is predicted to increase number of packages sold by 10%. Of these two alternatives, which one would you recommend Leisure to take and why? [10 marks]