$ Per unit Sales 5,185,000 $425 CM Ratio 0.9? Variable Costs 125,130 14.35 Contribution Margin 5,009,l?0 410.65 Less Fixed Expenses 155,400 Operating income 4,854,4?0 1 Breakeven in units = 3?8.43 Breakeven in $ = 160,832 Desired profit before tax $214,285.21 2 Units sold to earn $500000 in after tax profits 2,11?.I5 l 3 Margin of safety in $ is 5,024,168 Operating leverage 1.03 4 If sales increase by 15% operating income will increase bv 15.48% 5 Yes CBH should take on the advertising campaign because operating income will increase bv 167,641.89 or No CBH should not take on the advertising campaign because operating income will reduce by |:|