study the information provided below and answer each of the following questions independently:

3.1 Calculate the total Contribution margin and operating profit/loss

3.2 How many bags must be sold in order to break even

3.3 Calculate the margin of safety in value

3.4 Calculate the number of dresses that must be sold in order to earn a profit of 540 000

3.5 The management at Talo Limited has a strategy to reduce fixed costs by 10% and thereby drop the selling price by 30 per unit. if the sales volume also increases by 4500 units, calculate the new total contribution margin and operating profit loss.

information:

Talo limited produces and sells ladies dresses for 600 each. each dress is manufactured using 1 metre of fabric and the time required to produce each dress is 3 hours.

Fabric costs 200 per metre and the labour costs 40 per hour. variable manufacturing overheads amount to 40 per dress. salesperson receive a commission of 60 per dress. fixed manufacturing costs amount to 2 400 000 per year. annual fixed selling and administrative costs total 606 000. Talo Limited expects to produce and sell 18000 dresses for the year.