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CVP question ABC company has provided the following information about the company Sales = $42,000 PRODUCTION Variable cost manufacturing) = $ 13,000 Fixed cost [manufacturing != $7,000 SELLING & ADMIN Variable cost = $5,000 Fixed cost = $3,000 Units produced = 1,500 Production capacity = 2000 units REQUIRED 1. Calculate CM per unit; CMR 2. Determine the breakeven point in units and 3. Calculate margin of safety in $& % 4. The sales manager believes that the company could increase sales by 700 units if advertising is increased by $5000. Should the company increase the advertising expenses in order to increase profit? 5. Determine the sales revenue in units and necessary to generate before tax profit of $8000 if tax rate is 30% 6. Determine sales revenue in units and $ necessary to generate after-tax profit of $7000 7. Calculate degree of leverage (DOL) and if sales increases by 15%, what will be the net income of this company. (use original data in the beginning)