Please explain to me this exercise to prepare and understand better. Will Rate!!!

Versace is a store that sells perfumes and presents us with the following information related to your income and expense:

Sales Price $75

Invoice Costs $35

Sales Commisions $12

Shipping $10

Advertising $80,000

Rent $40,000

Salaries: $200,000

Insurance $12,000

Determine:

1. Determine the contribution margin ratio and the expense ratio variable

2. Calculate the Break even point in dollars and units

3. Assuming there is no variation in price and costs. What would be the operating result if the company sold 30,000 units and if it sold $22,000? Prepare a contribution income statement for each situation.

4. If the profit wants to earn $250,000, how much do you have to sell in indades and dollars?

5. If management decides to increase commissions to $20, reduce invoice costs to $30 and deliveries to $7 what would be the new Break Even Point?

6. If management decides to eliminate commissions and increase salaries to $250,000, what would be the break even point?

7. If management decides to increase the price to $90, raise the variable costs to $70, advertising increases, which causes the fixed costs to increase them to $332,000 in total in total. With this strategy it is projected to earn $450,000. How many units should you sell?