* Please show complete working with formulas*

The contribution Format Income Statement for the most recent year for the Lasko Fan department for Lasko Company is given below: Total Per Unit Per cent of Sales Sales (20,000 units) $1,200,000 $60 100% 45 2% Less variable expenses Contribution margin Less fixed expenses 900.000 300,000 $15 ?% 240.000 Net operating income $69.900 Management is anxious to improve the department's profit performance and has asked for an analysis of several items. Required: 1. Compute the department's CM ratio and variable expenses ratio. (4 pts.) 2 Compute the department's break-even point in both unit and sale dollars. Use the equation method. (4 pts.) 3 Assume that sales increase Wy $400,000 next year. If cost behaviour patterns remain unchanged, by how much will the department's net operating income increase? Use the CM ratio to determine your answer. (4 pts) Sales (20,000 units) $1,200,000 $60 100% Less variable expenses 900,000 45 7% Contribution margin 300,000 $15 2% Less fixed expenses 240,000 Net operating income $60,000 Management is anxious to improve the department's profit performance and has asked for an analysis of several items. Required: 1. Compute the department's CM ratio and variable expenses ratio. (4 pts.) 2. Compute the department's break-even point in both unit and sale dollars. Use the equation method. (4 pts.) 3. Assume that sales increase by $400,000 next year. If cost behaviour patterns remain unchanged, by how much will the department's net operating income increase? Use the CM ratio to determine your answer. (4 pts) 4. Refer to original data. Assume that next year management wants the department to earn a minimum profit of $90,000. How many units will have to be sold to meet this target profit figure? (4 pts) 5. Refer to original data. Compute the department's margin of safety in both dollar and percentage form. (4 pts) (Total 20 points)